Farm Ireland

Tuesday 21 November 2017

Caution urged over grain prospects for 2012

Caitriona Murphy

Caitriona Murphy

Dairygold has announced its final grain prices for harvest 2011 of €160/t for feed barley, €168/t for feed wheat and €200/t for contract malting barley.

Non contract malting barley price was set at €165//t, while the price for contract oats was set at €610/t and €155/t for non-contracted oats.

The prices are for green grain, exclusive of VAT and moisture bonuses and include a bonus for growers who purchased seed and chemical from the co-op.

Looking forward to next year's harvest, Glanbia last week offered forward prices of €130/t for green barley and €136/t for green wheat off the combine for September payment.

IFA grain chairman Noel Delany warned farmers to take note of the lower prices predicted for next year when agreeing conacre deals.

The tillage man pointed out that fertiliser, fuel and seed prices had all increased significantly over the past 12 months and urged farmers to know their input costs when taking on additional land.

Fertiliser, diesel and seed prices have risen by 25-35pc this year, he said.

"Fertiliser prices next spring are looking like urea will be €500/t, 10-10-20 will be €520/t and CAN will be €400/t," he pointed out.

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"Conacre prices of €250/ac will simply not stack up when you take cost increase into account," he warned.

Meanwhile, the 2011 total EU cereals production is set to reach record levels again, with production predicted to reach as much as 280 million tonnes.

Despite wet harvesting conditions in some northern member states, EU production is expected to match demand for the current marketing year 2011/2012.

Ian Backhouse, chairman of the Copa-Cogeca cereals working party said the market balance was tight and stocks are likely to be lower at the end of next year.

Indo Farming