Compound feed prices benefit from lower wheat prices

The wheat price on the Matif in Paris fell through the psychological limit of €200 per ton at the end of February, and then to drop back to almost €180. The wheat market is under considerable price pressure as a result of ample stocks hanging above the market. Other feed grains such as barley and corn are declining along with wheat. The physical market prices for these raw materials are now also well below €200 per tonne and are therefore at the lowest level since early 2020, when the corona pandemic emerged in Europe.

For compound feed manufacturers, this means that raw materials can be purchased cheaper and their customers benefit from this. The price of A-brok fell by €0,35 last month to €31,70 per 100 kilos. Pork chunks even recorded a decrease from €0,55 to €30,80. This means that the price declines, which previously seemed to be leveling off, are gaining momentum again. Further price falls are also in the offing, because the recent fall in the wheat price has not yet been factored into the chunk price. Especially because soybeans have also fallen significantly in value in recent weeks. Soy hulls and meal used in compound feed also benefit from this. 

Further price drops likely 
The compound feed price indicator predicts further price drops for pork chunks of up to 12% compared to the current price level in the coming months. A similar price drop is possible for A-brok. Prices will probably drop below the five-year average, which has now almost been reached. The cheaper price of wheat in particular is making an impact, because this is by far the most important ingredient in many feed compositions. As far as the wheat balance is concerned, there is more than enough on paper in terms of usage, but ultimately the most important market factor in the coming months will be the weather.