Inside: Feed market
Pig feed prices are moving
Prices for the raw materials of pig feed are moving again at the beginning of February. This is a follow-up to the reductions that were already implemented earlier. The wheat price, meanwhile, has been described as volatile.
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The month of February starts with reductions in the prices of products derived from wheat yeast concentrate. This concerns Protiwanze, Bergapro, Sastapro and Amypro. All decrease by €0,10 per percent dry matter. More concretely: the benefit can quickly amount to €30 per tonne.
There are 2 arguments for the lower prices. For example, the lower prices for wheat are pointed out, but the higher production of bio-ethanol is also taken into account. The product is mainly used as a replacement for soy and rapeseed meal; protein products that command higher prices.
Competitor for wheat
A week earlier, the price of potato steam peels had already fallen. The decrease of €0,10 put the price back to €1,50 per percent dry matter. The price reduction makes the product more competitive wheat. Something that resulted in more demand. Like every year, the offer continues to increase towards the summer.
Meanwhile, the wheat price described as fickle. It is beneficial for the feed market that the euro exchange rate has risen, making it possible to purchase product cheaper. The stories surrounding the drought are less favorable. Despite the fact that the price on the futures market showed a brief increase, the price in Rotterdam still appears to be clearly below the level of 1 year earlier.
A final price change is being implemented by Duynie; in spent grain. That product drops by €0,10 to €2,25 per percent dry matter. Because dairy farmers are less eager to use the product, demand has decreased somewhat. At the same time, the supply (as a result of higher beer production) is increasing again.
Balance lost in the meadow
Supply and demand for most by-products are reasonably balanced, but there is an exception: whey. There is an abundance of whey available, which means that a lot is also sold to digesters. The pig farming industry is then able to absorb a limited volume. The price for the liquid product is €7 per tonne at 3% to 4% dry matter.
Reductions in the most important cost item for pig farmers are good news. It also helps that the mood on the meat market has turned around and that the pressure from dairy farming on some products is decreasing.