Grainmen seek better prices as just 5pc of crops to be harvested
Growers hopeful of boost to returns as US and Russia hit by harvest woes
Published 07/09/2010 | 05:00
Despite the poor weather forecast for this week, grain farmers are content as most of the harvest is now in store. Merchants suggest that 5pc of late-sown spring crops are still to be cut in the northeast.
Most farmers that haven't already done grain deals are holding out in the expectation that increases in grain prices since last July will continue.
This comes on the back of reports of a smaller than expected US corn harvest and an extension of the ban on Russian grain exports until after next year's harvest.
These developments fed into a €10/t jump on London feed wheat markets last week and a further €5.40 yesterday morning. That left November contract prices for wheat on the LIFFE UK market just shy of €200/t this week, with milling wheat on the French MATIF hitting €234/t.
The IFA reports that spot prices for imported wheat are more than €200/t.
Merchant intake was well back on last year as yields came in below average. Low moistures also facilitated on-farm storage and inter-farm trade. Recent announcements of a €50/t increase in compound feed prices boosted farm-to-farm trade even more.
"Feed grain prices have moved to a new level in the past week," said IFA grain committee chairman Noel Delany.