In times of rapidly declining pig and milk prices, compound feed prices are developing favorably for livestock farmers. In September, both pig and cattle feed became cheaper again for the ninth consecutive month. Further price decreases are also likely in the coming months.
The wheat price on the Matif in Paris has been below €200 per tonne for several months now, and the trend is still slightly downward. In short, this is because global grain production has risen faster than consumption, although consumption is also improving. According to the Food and Agriculture Organization (FAO), production is even showing the strongest increase in over a decade. Demand for feed wheat is currently so weak that the regional exchanges in the Netherlands have been closed for some time due to a lack of transactions.
On the protein side, soybean prices are fluctuating, but at a historically low price level between $350 and $390 per ton. The United States is experiencing large surpluses because China, for geopolitical reasons, is sourcing elsewhere.
Chunk prices further down
The price of pork feed has fallen by €5,50 in recent months to €281 per tonne. This is the lowest level since the summer of 2021. The price of standard A feed, with a decrease of €4,50, showed a larger drop than in previous months and now stands at €296 per tonne. Figures from Wageningen Economic Research (WUR) also show that prices of other cattle and pig feeds have also become cheaper.
Compound feed price indicator
A further decline is expected. It is not unlikely that grain markets will remain supply-driven in the coming months, potentially pushing the market floor even lower. In addition, European producers are benefiting from the strong euro, which makes importing overseas volumes cheaper. The Compound Feed Price Indicator Boerenbusiness anticipates further price reductions of 5% to 10% on the current price level for both cattle- as meat pig chunk.