Trader challenges IFA stance on grain price
TheRE were mixed messages on grain prices this week, with the IFA predicting a market recovery, while a leading cereals trader warned that a further fall was possible.
Pointing out that the US maize crop continued to be downgraded, the IFA predicted that EU and Irish grain prices would strengthen further over the coming weeks.
But speaking at last week's Teagasc Tillage Forum, John Bergin of cereal traders R&H Hall warned that the corn harvest in the US may lead to more downward pressure on grain prices here at home. However, he said any movement would not be significant.
At the moment €155/t is being quoted for green wheat and €188/t for dried wheat. Dried barley is making €174/t, while barley off the combine is being bought for €140/t.
Mr Bergin told the forum that this year's harvest prices were on the average for the last five years.
However, the IFA was more optimistic for prices in the short-term. "Irish grain prices firmed further in recent days as the US maize and soybean yields are revised lower with each passing week. World prices continue to edge higher," said the IFA's John Delany.
Mr Delany added that rising soybean prices were lending support to demand for maize and wheat.
"Irish growers who tipped and stored grain during the harvest are achieving €7/t to €10/t over official green quotes, in addition to free transport," Mr Delany maintained.