The prices of pig and cattle feed have been falling continuously for a year and a half. Moreover, the end of the price drop is not yet in sight.
In December, the price of A-bloc fell by €15 to €321 per tonne, according to figures from Wageningen Economic Research. In the same month, pork chunks also became €15 cheaper to €313,50 per tonne. Other cattle and pig feeds also fell in price. The price drop has now lasted continuously for a year and a half and started in July 2022. In the meantime, compound feed prices are almost at the same level as before the war in Ukraine.
With current knowledge, further price drops appear possible in the coming months. The Compound Feed Price Indicator of Boerenbusiness provides that the A-bunk prices could fall another 10% based on current price levels. Pork chunk can also become cheaper, although the expected percentage decrease in price is slightly more limited. However, it must be noted that the expectation is independent of political developments and weather effects, which, as is known, can significantly influence the commodity markets.
Commodities market
The lower chunk prices are a result of the recent decline in the raw materials market, although the rate of decline is no longer so rapid. Feed wheat has fallen to €220 per tonne. The prices are therefore in line with the Parisian futures exchange Matif. These prices have not occurred since February 2022. Analysts do not expect much lower prices in the short term.
The price of soybeans on the CBoT in Chicago is also moving down, after a rebound in November. In early January, soy is trading on the world market for $466 per tonne. However, the market could just turn upside down again, because in Brazil (the third largest producer in the world) is spoken about the lowest hectare yields of soy in forty years. This is due to the weather phenomenon El Niño, which has a much greater effect than expected.