Confidence soars with wheat price up by 66pc
Forward prices for dried wheat reached €188/t in recent days as the Irish market followed international trends upwards.
Forward prices are now running some €75/t ahead of those on offer at the same time last year, giving tillage growers added confidence as 2010 comes to a close.
Glanbia suppliers were offered €188/t for dried wheat or €156/t for green wheat on Friday, based on December 2011 payment. This is an increase of some €14/t in just two weeks.
Glanbia suppliers were also offered €176/t for dried barley or €144/t for green barley, with the same payment terms.
Forward prices on offer from Drummonds have risen by €10/t in recent days, with prices of €180-182/t for dried wheat or €150-152/t for green wheat, based on November 2011 payment.
The Irish price moves are following international trends, which has been rising steadily for a number of weeks now.
On the London LIFFE, January 2011 wheat contracts reached £188/t on Thursday, reaching the highest levels since late March 2008. November 2011 contracts on the LIFFE reached at £156/t on the same day.
Several factors are driving the increase in grain markets in recent weeks. Dry weather conditions in the US mid-west is causing concern for the winter wheat crop there. Only 47pc of the crop has been classified as good or excellent by the US Department of Agriculture, the lowest percentage in years.