Little spectacular news on the liquid feed market, at least in the quotations. Price movements of the various residual flows can be counted on one hand these days, but behind the scenes the negotiating position of the livestock farmer is improving visibly.
On balance, February can be seen as a transition month towards the start of the spring, with the downward trend starting for price decreases in this spring. It is already clearly noticeable that the range of potato steam peels feels much wider than at the end of last year. The steam peels become thicker again, so that there is logically more supply available. Suppliers can easily find supply these weeks and also at lower purchase prices. At the front, this does not translate into falling prices, but the livestock farmer's bargaining position is improving by the week. This story also applies, albeit to a lesser extent, for wheat yeast concentrates and wheat starches.
In March, manufacturers generally increase the production of various seasonal products such as brewer's yeast, while more residual flows can also be expected from the dairy industry. An extra supply of brewer's yeast is not an unnecessary luxury this year. According to several suppliers, the supply still has a gap to close to meet the demand again. The surplus of dairy residual flows that became available last year is not expected this year. Due to the extra capacity of powder towers, less cheese is produced, which logically results in fewer secondary flows.
Commodity prices will not put pressure on the liquid feed market at the beginning of this year, but this will not relieve the market either. For example, due to a wheat exchange rate on the Matif, which affects various residual flows, albeit with some delay. Nevertheless, the liquid feed market is clearly inclined to decline, because most flows are trading at a solid price level. At the front, the market is still moving in a zone where it is interesting to calculate the rations again and compare them with solid raw materials such as barley and wheat.
How much impact the stopper regulation in dairy farming will have an impact on the feed market is difficult to predict. Feed manufacturers are of course not happy with the expected drop in demand, but on the other hand, they are not too worried either.