Eurozone debt crisis sees grain prices dip
Cereal drops by Â¤4/t as investors turn to safer options such as gold
Published 09/08/2011 | 05:00
Grain prices dipped last week as the EU debt crisis sparked a massive sell off of all commodities as investors abandoned riskier assets in favour of safe havens such as gold.
Only fears of an unusually tight carryover stock of world maize, which is currently 25 days or less, kept a floor in the grain market and supported prices.
Cereal prices fell significantly on Thursday and Friday, with new crop dried barley trading down €4/t to €190/t. Wheat was more resilient, holding at €194/t despite London futures falling by £4.50/t.
Prices for new crop dried Irish barley closed the week at €190-192/t, with €192-194/t on offer for harvest wheat.
Green offers for barley are ranging from €158-160/t in the southeast to €168.50/t in the midlands, east and northeast for grain at 20pc moisture, excluding VAT.
Grain traders are also waiting for the latest United States Department of Agriculture (USDA) crop report on US maize stocks, which is due on Thursday.
High maize prices would support feed wheat and barley prices across the world as livestock producers switch from more expensive maize to cheaper cereals such as barley and wheat.