Animal feed raw materials are expensive

Various factors are of importance in the pricing of various animal feed raw materials. When purchasing most raw materials from outside Europe, the ratio between the exchange rate of the euro and the dollar plays a role. The euro exchange rate has weakened in recent weeks. This has fallen below 1.10 dollar. The weakening of the euro makes the price of raw materials overseas higher. The outlook for the euro exchange rate is not great due to uncertainties about developments in the Eurozone and the course of Brexit. Spread of the coronavirus The spread of the corona virus also affects raw material prices. The outbreak of the new disease has put pressure on several commodity markets over the past month, and fears that the coronavirus will cause the Chinese economy to falter for the time being, with consequences for the economy in the rest of the world, is causing negative sentiment in the market. In particular, the price of soybeans came under pressure. On the other hand, the trade ...