July 7, 2008
Evialis sees grain prices staying strong
French animal feed maker Evialis, which has raised its feed prices significantly in recent months, sees no reason for booming grain prices to fall as the main bullish factors are unlikely to disappear, its CEO said Thursday( July 3, 2008).
Pierre Lefebvre, in a Reuters interview, said rising demand from fast-developing countries where a growing middle class eats more meat is pushing prices higher.
Low grain stocks and strong demand to make grain-based biofuels would continue to support prices even when other markets slump, he said.
Although wheat prices fell in recent months, corn and soy futures hit all-time highs on US markets in the last few days on worries over US crops.
He added that there is no respite in sight for high prices currently to return to the low levels seen a few years ago.
He stressed, however, that volatility would prevail and that even if large crops could ease prices years later, low stocks would keep bullish pressure on markets.
Due to high grain prices, Evialishad to raise prices of some of its key feed products by 40 to 50 percent.