Grain prices rise by over €10 per tonne
Wheat selling at €175-185/t and dried grain at €205-210/t
Grain prices have hardened by around €10/t over the last few days on the back of reduced harvest forecasts across Ireland, Britain and the continent.
And farmers believe prices will strengthen further in the coming weeks as Europe’s worst drought in a generation continues to bite.
While firm harvest prices have not been fixed by merchants, farmers report that informal quotes for barley and wheat off the combine has increased to €175-185/t, with dried grain at €205-210.
Growers report that merchants and malting companies have been contacting them over the last week in an effort to secure crops at current prices.
However, growers have been slow to commit to prices or to sell grain, with the general consensus being that prices will rise further.
“Grain prices are only going one way — that’s up,” one Kildare grower maintained.
“Every grower with suitable sheds is storing.”
The latest price hikes have been driven by events in Britain and Europe. Estimates for the German wheat harvest have been reduced to around 18m tonnes, while the Swedish grain crop is forecast to be 40pc back on average yields. This means the Nordic state will move from being a traditional net exporter to an importer to meet domestic requirements. The wheat harvest in Britain has only just begun but there are mounting concerns regarding the overall grain yield, with the spring crops particularly hard hit.