Grain price surge as EU output falls
IFA urges growers to hold stocks as Glanbia sets on-account price
Grain prices have again strengthened on the back of further reports of poor harvests in Britain and across continental Europe.
While yesterday was a bank holiday for British traders, by mid-morning prices for milling wheat on French futures markets had traded up by €4.75/t. This was on the back of a €10.75/t surge for MATIF French milling wheat last week and a £3.75/t rise for feed wheat markets in London.
The latest increases will not please suppliers to Glanbia, who were informed on Friday that the on-account prices for green barley and wheat were €135/t and €145/t respectively.
While this is a full €15/t higher than Dairygold's on-account quote, growers will point to market prices that are closer to €160-170/t for green wheat at the moment. Barley is trading at €10/t less.
IFA national grain committee chairman Noel Delany said that growers would be significantly better off to opt for drying and storage rather than waiting for a market review from buyers that traditionally have not delivered.
"The bottom of the market for dried barley is €172 to €176/t collected ex-store and €184 to €187/t for wheat," said Mr Delany.
"Forward prices for September-October collection are €8 to €10/t higher for both wheat and barley.
"Even allowing for a drying charge of €15 to €18/t at 20pc moisture plus weight loss, it's obvious that these on-account prices are a ploy by two of the bigger buyers to undermine the market and condition growers into accepting a below-the-market price."