The wheat price has skyrocketed again. This can form an obstacle to a further fall in compound feed prices, which are still moving downwards.
Compound feed prices fell for the third month in a row in September, according to quotes from Wageningen Economic Research. The price of A-brok then fell by more than 3% to €38 per 100 kilos. Pork chunks fell by 6% in price to €40,35 per 100 kilos. This has somewhat smoothed the sharp edges of the high feed prices. It was thought that chunk prices would show a further decline, but that outlook is clouding. The rise in the wheat price is the cause of this.
Wheat price
The wheat price on the Matif passed the level of €350 per tonne this week for the first time since June. The market is dominated by the unrest in the Black Sea region. Now that Russia has annexed parts of Ukraine, the question remains whether the grain corridor will survive. Russian farmers have also been mobilized, which could endanger the 2023 grain harvest in Russia. In addition, there are concerns about the 2023 harvest due to drought in the United States, which could have an upward effect on prices.
Whether the wheat price will hold on to the higher rates will have to be seen in the coming weeks. Analysts are divided on this. The development on the Matif also determines the prices of grain maize and barley, which often fluctuate with wheat. On top of that the availability of grain maize in Europe is very disappointing. The extremely dry summer has seriously damaged the harvest in France.
Market expectations
The increase in wheat prices limits the scope for further price declines for chunk prices. The compound feed price indicator for pork chunks, a decline of approximately 2% is expected until February. A month ago that was still 4%. The price of beef chunks may see a sharp decline for the time being, according to the report compound feed price indicator .