Grain Market Update 15th December
|Commodity||Jan-Mar 2023 Dried €/T||Sept 2023 Green €/T||Nov 2023 Dried €/T|
|IRL Feed Wheat¹||312-315||237||290|
|IRL Feed Barley¹||305||227||275-280|
|Paris MATIF Wheat²||302||–||277.75|
|Paris Oilseed Rape²||561||–||570|
|Maize ex Port||300-305||–||N/A|
MATIF wheat prices have steadied in the region of €300/t during this trading week following on from strong downward sentiment in recent weeks.
Global prices continue to be pressurised by strong Black Sea exports and a large Australian crop. This news is outweighing the sentiment from the drought in Argentina which will reduce wheat production there by 3 million tonnes (USDA)
Tirlan offered €227/t and €237/t for green barley and wheat this week which is an increase of €4/t on last week’s offer.
Native dried prices for wheat in store remain around €312-315/t with buyer activity in the market reported as limited due to high levels of cover taken out in previous weeks.
Oilseed rape prices continue to respond to soybean and crude oil market movements daily. Both old and new crop prices in Paris are trading in a range of €562-572/t this week.
Grain Committee & Policy News
The National Grain Chairman attended a meeting with the Minister for Agriculture this week as part of a wider IFA delegation. The potentially devastating impact of the EU Sustainable Use of Pesticides proposals for Irish tillage farmers was highlighted to the Minister. It was stated that Nitrate Vulnerable zones must be removed from the sensitive area(s) definition for Ireland and a full impact assessment of the proposals for Ireland must be undertaken.
The Teagasc outlook for the tillage sector in 2023 was published this week. Margins are forecasted to move downwards on all tillage farms in 2023 due to a 20% decline in output prices, an increase in direct costs and a possible return to average yields below that of 2021 and 2022. Cereal based net margins are forecast to be negative on 50% of specialist tillage farms in 2023.