Wheat and barley prices fall amid oil and energy turmoil
Spot prices for Irish wheat and barley fell by around €10/t to €228-230/t and €208-212/t respectively in recent days as turmoil on the oil and energy markets continued.
Many Irish mills are running 20-25pc behind expectations on feed sales drawdown, resulting in little demand for spot wheat or barley.
Demand on the world market for soft commodities such as grain continues to fall as concern grows that the rising oil prices will slow down the global economic recovery.
On the supply side crop reports are mainly positive, showing that the majority of crops have wintered well and spring crops are in good shape.
As a result, futures prices for cereals have also fallen, with Paris milling wheat dropping €10/t for March and May contracts on Thursday, before recovering by €5/t.
Chaos in the Middle East is also pulling speculative fund investors out of the grain market and into the oil market in the hope of bigger profits.
In recent weeks, similar price volatility resulted in North African and Middle East buyers returning to the market to buy physical grain in an effort to boost their stocks and there is a chance this could happen again.