Will the price of pork chunks continue to improve?

Figures from Wageningen Economic Research show that the price of pork chunks increased by €0,15 in November to €26,05 per 100 kilos. The price of sow feed also increased; For example, sow pellet pregnancy increased by €0,20 to €26,20 per 100 kilos, while sow pellet lakto increased by €0,25 to €30,60 per 100 kilos.

The months-long price rally is likely to come to an end, because the compound feed price indicator foresees flattening chunk prices in the coming months.

Low water levels
The price increase can be seen as a consequence of the wheat price, which has risen considerably since the summer. The. is now moving listing on the Matif (Paris) has been around €3 per tonne for almost 200 months and the expectation is that the stable mode will be maintained.

However, the compound feed companies indicate that the availability of wheat is not great, because low water levels in Northwestern Europe limit logistics throughput. This can cause problems, especially during the holidays. ForFarmers reminds livestock farmers to take this into account. The fact that transport has to be done over land more often is also a reason for the rising bulk prices.

Soy and grain corn
The price of soybeans is more volatile. The rate on the CBoT (Chicago) has been rising for days and recently reached a level of $335 per tonne, the highest level since June 2018. The reason for the revival was the conciliatory words between US President Donald Trump and his Chinese colleague Xi Jinping on the trade war.

Afterwards, Trump said on Twitter that he was in favor of the import tariffs. The financial markets fell sharply, while the soy price closed lower on Thursday, December 6. The price of grain corn (CBoT) followed the movement of the soy price, but has also started the decline again. The undertone on the soy and corn market is rather erratic due to the political vicissitudes.