The price of pig feed fell in February for the first time in six months. The price of A-feed, on the other hand, continues to rise. As a result, this cattle feed is more expensive than pig feed for the first time in almost two years. The sharp drop in the wheat price due to the trade war unleashed by the US is particularly favourable for pig feed.
Figures from Wageningen Economic Research show that the price of pig feed fell by €1 last month to €307,50 per tonne. This is the first drop since August last year. Sow feed lacto and piglet feed did become more expensive in February, as did transition feed. The price of A feed is also still on the rise and rose by €2 to €309,50 per tonne. Protein-rich feed (B) also became more expensive.
The decline in pig feed clearly deviates from the price direction of other feeds. The reason for this is that there is a relatively large amount of wheat and barley mixed in pig feed. According to market bureau Stigevo, this concerns more than 50% of the composition, while this is only 10% for A-feed.
Wheat prices down
The physical prices of wheat and barley (Rotterdam) relaxed somewhat at the end of 2024 and have fallen sharply in recent weeks. On the matif wheat has fallen back to just above $200 per tonne and Chicago has recently been trading below the $200 per tonne level. The reason for the rapid declines lies in the trade war that the US is currently fighting with countries such as Canada, Mexico, China and also Europe. Initially, the tensions led to higher commodity prices in early February, but the price movement is now clearly downward.
If raw material prices do not correct upwards in the short term, a further decline in (pig) feed prices is likely. The stronger euro is favorable, since raw materials are often imported in dollars. It is good to realize that the news about the trade war follows each other in rapid succession and the situation changes almost every day.