Bulk prices showed a diverse pattern in July. While the prices for pig feed increased slightly, cattle feed became slightly cheaper again. What is the expectation for the coming months?
In the months of May and June, both pig and cattle chunks continued to increase significantly, after a long period of price declines. However, the upward trend did not continue in July. Pork chunks increase by €1 to €299 per tonne, while A-pellets decrease by €1,50 to €308,50 per tonne. Sow feed and piglet pellets also became slightly more expensive last month, just as other cattle feed became cheaper. In the meantime, calf chunks are price-bearing.
Admittedly, the changes in July are limited. Yet the divergent trend is striking. This has to do with the composition of the feed. In pig feed, wheat and barley are the dominant grains in the composition. In A-brok this is mainly grain corn, soy hulls and palm kernel meal, according to data from market agency Stigevo.
Calm commodity markets
The physical commodity market for wheat, barley and grain corn is currently rising slightly, but this trend is likely to level off soon. On the futures markets, wheat prices move up and down to a fairly limited extent, after a significant depreciation in the first half of July. The wheat quotation on the Matif in Paris is hovering around €220 per tonne, with a price level of €215 seen by analysts as a bottom.
In Europe the grain harvest will then be disappointing, but in the USA favorable growing conditions predict an excellent harvest. Moreover, there are still many old stocks that can be drawn from. Large price increases are therefore not expected.
Compound feed price indicator
The Compound Feed Price Indicator of Boerenbusiness does not foresee any further price increases in the coming months. Presumably the quotations of pork chunk, just like the cattle feed, how relaxing.