Wheat residual flows sensitive to price reduction

A series of price reductions have been introduced on the liquid feed market. This was also necessary to make by-products attractive compared to other feeds. Due to significant price increases in the last quarter of 2016, the market had reached a point where the secondary producer could hardly count on anything interesting in the rations.

Corngold exclusively from Van Triest
There has been price relief in recent weeks for wheat starches, wheat yeast concentrates and dairy residuals. The market has learned that sales of TGC Corngold have been entirely in the hands of Van Triest Voeders since this spring. Previously, Rinded also owned a share.

There is also a (slight) price pressure visible for brewer's yeast and the residual flows from the bread and potato industry. The market is at a point at the end of April where one product stream is more sensitive to price relief than the other product stream.

Seasonal trends
Manufacturers are reporting an increasing supply of brewer's yeast. Beer production will be increased towards the summer, resulting in more supply. In addition, the grazing season in dairy farming brings with it a drop in demand. An increasing supply is also noticeable in dairy residual flows, such as cheese whey and feed whey. This has to do with the milk supply, which traditionally reaches its peak in May.

Expectation
The quotations for wheat starches, wheat yeast concentrates, brewer's yeast and bread and dairy residuals have the potential to decline further. This depends on the available supply and commodity prices. This also applies, albeit to a lesser extent, to potato residual flows, which are worth around 1,50 euros per percent of dry matter.

The wheat and soy prices are decisive in this market. Sentiment around the wheat price is predominantly negative on the Matif and prices are under pressure. The market closed on Monday, April 25, at 164,50 euros per tonne. The ample stocks create price pressure. On the other hand, France is experiencing a severe drought. This can, in the long term, have a price-boosting effect. The soy price, listed on the CBOT, has been declining more or less all year. In recent weeks, weeks 16 and 17, the price has shown some upward correction again.