The straw market isn't following its usual pattern. This is largely due to the changeable weather. There's also a fluctuation in by-products and residual products that isn't quite what you'd expect in the middle of summer.
Despite the changeable weather, a considerable amount of wheat was harvested and straw baled last week, especially in the southwest of the country. Insiders estimate that 80% to 90% of the straw in this region has been baled. "Apart from a small patch of spring wheat, it's all done now," says a trader. Things are quite different in the north of the country. There, most wheat is still in its final stages, and growers had little to no chance to thresh last week. "The only advantage of the late harvest is that they can start threshing once, and we can also bale the straw quickly. You don't have to wait for the green knots in the straw to dry out," says a forage trader in the north of the country. The wheat harvest in eastern Germany has also yet to properly begin.
Rising price
With a substantial area still to be threshed, you'd expect straw prices to remain under some pressure. However, the opposite is true. A few weeks ago, some traders made sharp price cuts for new straw. If you order straw for immediate delivery now, prices are higher. Due to the changeable weather, some arable farmers are a bit more willing to switch on the chopper on their combine harvester. In the south of the Netherlands, but certainly also in central and southern France, most straw is now in the barn, and on average, there was slightly less straw in it than traders estimated a month ago. All in all, this has caused the DCA Indicative Price for wheat straw to rise by €5 to €150 per tonne.
There are no major shifts in by-products this week. According to some suppliers, the supply of potato steam peels is limited. Not all processors are fully operational yet, and the new potatoes are being thinly peeled. The supply of feed potatoes has dried up considerably. "Consignments that we were actually already promised for feed are being repurposed," says a trader. Some are still being used for fries. Despite this, the price for feed potatoes remains stable at €30 per tonne.
Less supply, yet a rising price
The supply of brewers' grains is declining. On the other hand, demand is also lower. Compared to other protein products, brewers' grains are relatively expensive. Some livestock farmers are therefore switching to products like soybean meal. The fact that the grass has excellent feed value is also putting a damper on demand for brewers' grains. The DCA Indicative Price for brewers' grains is falling this week by €0,10 to €3,50 per percent dry matter. According to traders, this is more a correction to keep pace with other protein products than a shift in the supply and demand for brewers' grains.
Maize silage and grass silage are taking a step back this week. The maize for the new harvest is generally in very good condition, but the kernels still need to be filled. If we get enough sun and some moisture in the coming weeks, that will be perfect, but farmers who want to sell maize want to be sure before offering maize currently in the silage. The DCA indicative price for maize silage is €85 per tonne. As usual, the search for good quality grass silage is on. The DCA indicative price for grass silage is €85 per tonne this week.
There's little trade in hay. Grass seed hay is available, but there's not much demand for it. It's really enthusiasts who are in the market for it. Hammered Spanish straw has more or less replaced grass seed hay as a structural product in rations, partly due to its consistent quality. The DCA indicative price for grass seed hay remains stable at €150 per ton.