It is a compromise for traders in the roughage market in several respects. The harvest of straw and grass seed hay is at a low ebb due to unstable weather. Incidentally, this has various effects on the market. Developments in Ukraine do not seem to go unnoticed in the by-products sector.
There is a reasonable supply of well-sourced straw from France at the moment. The supply of Dutch straw is poor in comparison. That in itself is not strange for the end of July. The harvest peak is usually August. Showery weather alone does not help the supply of straw. The grain harvest has partly stopped in anticipation of dry weather. But the interest in arable farmers to press straw is also decreasing, according to several traders. Less manure was spread in the spring due to a wet spring and arable farmers with space do not want to run the risk of having to leave the straw for a few weeks, missing the opportunity to spread manure again. This can also change again, but then it must become more stable again. Prices asked for straw vary considerably between different traders. The DCA Indicative Price for wheat straw this week is €125 per tonne and for barley straw at €130 per tonne.
There are also major differences between traders when it comes to grass seed hay. One person has little demand, while another reports a lot of interest. What most traders agree on is that there is no shortage of supply. Here too, the chopper on the combine is easily switched on. The DCA Indicative Price remains the same as last week at €145 per tonne. Pasture hay is also difficult to obtain. The DCA Indicative Price takes a step up this week to €185 per tonne.
Volatility in the commodity market
The demand for by-products remains good, certainly for this time of year. The grass is now starting to grow again, but the first and second cuts were not equally good everywhere and autumn grass is never the real winner in the ration. Partly because of this, there remains fairly good demand for by-products. Developments on the raw materials markets following Russia's attacks on Ukraine are making processing companies cautious. Normally the harvest period is the cheapest period to secure raw materials, but things are different now. And an increase in protein-containing raw materials will also eventually affect various by-products that are directly or indirectly related to the raw material markets, such as wheat yeast concentrate, soy meal or corn gluten. The potato processing industry has yet to start up on the new harvest of potatoes, so the supply of steam peeling, shredded and other residual products is limited at most suppliers. When it comes to spent grains, supply and demand are in good balance. This is also reflected in the DCA Indicative Price, which remains unchanged at €3,80 per percent dry matter.
There is little change in silage maize and silage grass. Corn is slightly more available, but sellers are not dropping the price yet. The DCA Indication Price remains stable at €115 per tonne. Good silage is and remains scarce. The more extensive companies are not keen to get rid of good grass now. Several traders report that you now mainly have to rely on companies that are closing down. The DCA Indicative Price increases to €110 per tonne.