Unrest in the grain market drives up lump price of pigs

The price of pork chunks has risen by €0,40 to €24,95 per 100 kilos, the highest level in 1,5 years. The rising raw material prices have not yet been passed on. The compound feed price indicator van Boerenbusiness also foresees price increases of up to 6% in the coming months. Sow feeds have increased even faster this month. Gestation by €0,55 to €26,05 per 100 kilos and lakto by €0,50 to €30,30 per 100 kilos. Baby piglet pellets increased in the same order of magnitude to €36,40 per 100 kilos. Start/transition grain plus with €0,40 to €29,20.

Chinese resource hunger 
The significant price increases are due to higher raw material prices. The March wheat contract on the Matif in Paris rose above €210 per tonne in December. Last summer, wheat was still trading below €180. The grain market is currently in turmoil due to strikes Argentina, which endangers exports. In addition, Russia's influence is great. Although the country has ample supplies, it will tax its own wheat exports to slow the domestic price rally. Food prices in Russia are skyrocketing. 

In general, the grain market is dominated by countries that need to maintain their stocks in view of the corona crisis and food security. Major consumer China is an example of this. Soybean prices in Chicago recently reached their highest level in 10 years. Since the summer, that quotation has risen by as much as $130 to a price above $433 per tonne. Here too, it is China that is driving up the price large volumes of soybeans to buy as raw material for the growing pig herd. Analysts believe that the end of price increases is probably not yet in sight.