The hope for a dry spring has come true and with that the heated manure market has been able to relax considerably. Now that precipitation is not forthcoming, drought is increasingly becoming a point of attention on other fronts. For example on the roughage market, although we should not expect the situation at this time of year...
Now the manure in many places, grassland could use some precipitation to develop a good first cut or to offer the cows a tasty and nutritious pasture outside. In some places in the Netherlands, no precipitation has fallen this month, which could put March in the top 5 in terms of drought since 1901. There is still some precipitation in the pipeline this weekend, but according to the models, it will remain millimeter work and therefore hardly make any difference.
However, labelling the increasing drought as a problem goes much too far. 'Dry March and wet April make the farmer happy', as a Flemish proverb goes, not for nothing. A round of telephone calls through the market does teach us that drought is increasingly becoming a topic of conversation in the market, but no more than that. 'It is dry, but not too dry yet', says an insider soberingly.
Limited supply and demand on straw market
It does not have much influence on trade, at most it keeps the price of meadow hay at an extra level. However, the increase of last week does not continue, which means that the DCA indicative price remains the same at €190 per tonne. The same trend is visible in the markets for straw and silage maize. Straw stocks are still tight, but livestock farmers do not buy more than necessary and try to hold out until the grain harvest in the hope that the market will calm down a bit. Much will depend on the coming growing season. The DCA indicative prices of wheat and barley straw remain the same this week at €185 per tonne.
Silage corn sideways further
The falling price of silage maize has stopped for the time being, because the DCA indicative price remains the same at €80 per ton. This can be seen as the middle of what is paid in the market. For quality of, for example, 400 grams of starch per kilo of dry matter, the prices are approaching €100 per ton. However, the bottom of the market is at €70 per ton. Demand is not wild, but supply is limited due to the disappointing harvest last year. However, cow beaks will disappear due to the stoppers scheme. All in all, insiders expect few price changes in the coming weeks.
Take note of the brewers' grains
The by-products market is also quiet. Livestock farmers are hesitant to buy, partly because the grazing season is starting. This entails a change in the ration. Nevertheless, the price of brewers' grains will not fall any further this week, which means that the DCA indicative price remains at €3,40 per percent dry matter. However, a further price drop is likely, based on the long-term average. This is also sometimes taken into account in the market.
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