European grain prices lift as record rainfall destroys crops
Published 22/06/2010 | 05:00
Speculation is mounting that a major spike in oat prices on the US market could feed across the Atlantic to lift European grain returns in the coming weeks.
A weather premium is starting to develop as disastrous conditions are reported in Canada, Poland, Russia, Ukraine and the Czech Republic.
The price of oats rose by 40pc last week on the Chicago Board of Trade (CBOT) as a result of the worst Canadian spring in 40 years.
IFA grain secretary Fintan Conway and David Neale from Masstock UK highlighted the effects of weather on major grain producing regions at an IFA tillage meeting in the Anner Hotel in Thurles, on Thursday night.
The Canadian Wheat Board has predicted a drop in oats sowings of 8.5-12.25m acres, growers were told.
Canada is the largest global exporter of oats, accounting for 80pc of the entire market. It is the second largest exporter of wheat and the fourth largest exporter of barley.
Meanwhile, Poland has experienced the worst rain in 140 years, with vast tracks of agricultural land destroyed by flooding. Around 40pc of the country's hops harvest has already been wiped out.
Ukraine, Russia and the Czech Republic have also experienced massive rainfall and flooding.