The prices of pig feed have been falling for a while and now the cattle feed has also started to move downwards. The downward trend of compound feed is heralded by the declining raw materials market. In addition, the stronger euro is also to the advantage of European feed producers. What are the expectations for the coming months?
Figures from Wageningen Economic Research show that pig feed fell by €1 to €305,50 per tonne in April. This is the third fall in a row. Sow feed and piglet pellets also became somewhat cheaper last month. A downward trend has now also started in cattle feed, as A feed fell by €1 to €310 per tonne, B feed is also moving downwards.
Wheat cheaper
The reason for the price drop is due to more favourable raw material prices. The wheat price on the Matif has dropped to just under €200 per tonne, the lowest level since September last year. Incidentally, physical product is not yet for sale at that price, but is also moving down. The feed wheat quotation in Rotterdam has dropped to €223 per tonne this week. In February, almost €250 per tonne was still on the boards. Grain maize is also moving down. The markets are reacting to a larger supply: the Europese Commissie expects the wheat harvest in 2025 to be 13% larger than the harvest a year earlier. The 2024 harvest was the smallest in twelve years. This year, the European Commission expects a wheat harvest of 126,3 million tonnes.
Soy is relatively cheap
In Chicago, soy has been on the rise again in recent weeks, but with prices still below $400 per ton, this is relatively cheap compared to previous years. At that time, the market sometimes peaked above $600 per ton. Soybean meal is also relatively cheap. Importers also benefit from the stronger euro against the dollar. European currency was worth $1,13 yesterday, while parity was still in sight at the beginning of this year. The trade war started by US President Trump is putting pressure on the dollar.
Expectation
The expectation is that pellet prices will see a further price decline in the coming months, as is also evident from the compound feed price indicator for both fattening pigs- as a-brok. It is true that the weather conditions at this time of year have a major impact on the commodity markets in the form of drought, for example. This means that the forecast is surrounded by uncertainty.