The downward trend in the compound feed market is accelerating and the bottom has not yet been reached. Further reductions are also likely in the coming months.
Figures from Wageningen Economic Research show that the price of pig feed in particular fell in February. The quotation of pork chunks fell by €8 to €391,50 per tonne. Sow feed and piglet pellets also became slightly cheaper. The decline in cattle feed is still very slow. For example, the quotation of A-brok fell by €2 to €376 per tonne. B chunks and calf chunks also only slightly decreased.
From the perspective of livestock farmers, the market holds favorable cards. In the sense that further price reductions are likely due to developments in the raw material markets, whereby especially the price of wheat recently went down. In the second half of February, the March contract on the Matif fell from €300 to below €275 per tonne. This is the lowest level since the outbreak of war in Ukraine, a year ago now.
At the moment, the room for further price drops appears limited, but the recent decline in the wheat market offers room for lower compound feed prices in the coming months. This is despite the fact that the price of soy has risen in recent months due to persistent drought in South America.
Compound feed price indicator
The compound feed price indicator foresees a price correction of approximately 10% for both until July pigs- as cattle feeders. This finally means there is a prospect of significantly lower feed prices, because the declines have been limited so far.