Liquid feed market is mainly driven by supply

The market in a nutshell: Price increases are visible for potato steam peels, wheat yeast concentrates (TGC) and corn feed meal. Downward price movements dominate wheat starches (TZM). The same prices apply to dairy residuals and brewer's yeast.

Wheat starch price reduction
The most striking change is the price reduction of wheat starch. Substreams such as TZM Bondatar, TZM Corami and TZM Sas van Gent have been reduced by Bonda by €0,05 per percent of dry matter. The reason: There is a relatively large supply of TZM entering the market these weeks. However, it is expected that demand for TZM will increase, now that residual flows from the potato industry are becoming scarcer. The initiated reduction is therefore no reason to expect a downward price trend.

Steam peels up
The residual flows from the potato industry are drying up due to planned production stops at potato processors. In the month of July, factories switch from old harvest to new harvest. This results in less production. In addition, fewer residual flows are released from new potatoes. Several feed suppliers, including Van Triest, have increased the price of potato steam peels by €0,10 per percent dry matter.

TGCs are scarce
Due to previous production stops by grain processors, there is little stock of TGC at the end of June. This is clearly reflected in the price lists, which range between €0,05 and €0,10 per percent of dry matter per part flow. A falling soy price has not been able to prevent this price increase. The scarcity of TGC is currently more decisive than a falling soy price. Although a falling soy price can of course deflect the rising price trend. The price of brewer's yeast remains unchanged, despite a wide supply.

Resources driven back
The soy price on the CBoT fell sharply last week. The price fell from $344,56 per tonne in 3 days to $332,16 per tonne. Ample ending stocks and good harvest forecasts are putting pressure on the price. Due to the hot weather in recent weeks, wheat prices on the Matif rose steadily in June, with €177,50 per tonne as the most recent high. Due to predicted rain in Germany and France, the price has fallen back to below €170 per tonne this week. 

In the past week, the soy price fell to $332,16 per tonne. The lowest level in 2017 so far.  

Prognosis
The falling raw material prices are favorable for the liquid feed market. Whether this will also lead to price relief remains to be seen. A tighter supply, due to drying up residual flows, means that forecasts show stable to slightly increasing liquid feed quotations.