IFA National Grain Committee Chairman Noel Delany warned growers not to be conditioned into accepting low prices for the winter barley crop, as a small number of buyers move to set the tone for the 2013 harvest.
He said, “World prices have been pressured lower of late as investors take a bearish view of the market, predicting a bumper maize harvest. However, much of the US maize crop was sown late into less than ideal conditions and now dry weather and climbing temperatures are impacting on crop development in a number of key states”.
Noel Delany said, “Growers should shop around before delivering grain and examine alternative outlets. The continuing dry weather will enable farmers to harvest at low moistures, which should facilitate increased on farm storage and farm to farm trade”.
Many livestock farmers are looking to supplement tightening grass and fodder supplies as reduced grass growth on drier soils is becoming an issue. Deals are being done for green barley i.e. at 20% moisture for €150/t to €156/t (exclusive of vat) collected ex farm, with dried barley trading from €178/t to €180/t.
He said, “At these price levels, growers once again are facing a very difficult year as crop returns will struggle to cover costs. It is vital that farmers look to alternative markets to boost returns”.