Compound feed prices are rising again after the summer market relaxed. Higher raw material prices are, of course, at the root of the price revival. What are the expectations for the coming months?
Both pig and cattle feeds were subject to slight price increases in November, according to figures from Wageningen Economic Research (WUR). For example, the price of pork chunks increased by €2,50 to €405,50 per tonne. The price of A-brok increased by €2 to €381 per tonne. The compound feed market is responding to the higher raw material prices in October.
Raw material prices
For example, the wheat price on the Matif then peaked well above €350 per tonne. Meanwhile, the Paris futures market has fallen back to €325. Historically speaking, prices are still high. The physical wheat prices in Rotterdam are slightly higher, but participate in the downward trend. Barley and corn are falling in the wake of wheat. Soybeans have also been on the rise in recent weeks, with the Chicago market even briefly peaking above $540 per tonne. This week the price fell again. The market is thus responding to disappointing global market demand. In addition, the weather conditions in South America are favorable for the crop and that moderates prices.
Compound feed price indicator
The compound feed price indicator predicts weakening prices in the coming months, both for fattening pigs- as beef chunks. This appears to put an end to the price increases of recent months, unless factories need more time to correct their margins.