Will compound feed become even more expensive?

In May, significant price increases were again visible, both for cattle and pig feed. For example, the WUR quotation for pork chunks rose by just €20 to €419,50 per tonne. Standard chunk A rose by about €10 to €385 per tonne. Livestock farmers have never been confronted with such amounts and hope that price relief will occur soon.

Compound feed price indicator 
The latter is not yet in sight, but the compound feed price indicator does not foresee any major price increases - based on current raw material prices - in the coming months. The predicted price increases for fattening pigs en beef chunks are limited to 1,5%. The leveling off forecast is due to the decline in the price of wheat, a heavyweight in many pellet compositions and also driving the price development of barley.

The September contract on the Matif in Paris fell in recent weeks from €426 to €380 per tonne. However, in recent days the price has risen again to above €390. This is because Russian promises to restart wheat exports from Ukraine come with some difficulty. The market is not yet convinced whether Putin and his associates are putting their money where their mouth is. All in all, these are complex negotiations mediated by Turkey.

Markets under the spell of the weather
Also the Wasde report at the end of last week popped up, allows grain prices to rise slightly. The shortage on the wheat market and the logistical disruptions in the chain were confirmed by the American Ministry of Agriculture. In addition to the political struggles, the raw material markets at this time of year are weather markets that often have an erratic character. Especially now that the markets are under high tension, there can be little negative impact on the wheat market, analysts indicate.

The harvest in Europe and the US is about to start and so things can still go either way. France is heading for a few very hot days, but the heat period will be short for the time being, according to the forecasts.