Grain prices have fallen sharply this weekly with a downward sentiment now taking hold.
MATIF Sep 22 closed yesterday at approx €360/t nearly 20% down on the peak in mid-May.
Rapid progress in US wheat harvesting, an early European harvest and a very large Russian forecast appear to be exhibiting pressure on all commodity markets.
Paris rapeseed (Nov 22) closed at €718.50 on Tuesday and dropped to €657 by Thursday evening, the lowest price since March 4th this year.
On Wednesday June 22nd, Glanbia offered €295 for green barley and €310 for green wheat down €15/t on last week.
Dried native prices are difficult to secure given the high daily volatility in markets.
FOB Creil malting barley didn’t fall as sharply as other grains this week with the price settling at €435/t, the rolling average for Boortmalt suppliers is now €436.09/t.
|September 2022 €/T||Nov/Dec 2022 Dried €/T 1|
|IRL Green Wheat||€310||N/A|
|IRL Green Barley||€295||N/A|
|Paris MATIF Wheat||€363||€355|
|Paris Oilseed Rape||€682||€657.50|
Global Grain Supply and Demand
There are still bullish supply factors underpinning global grain prices such as the ongoing war in Ukraine, drought-stricken USA wheat crop and below average yields across southern Europe.
MARS, the EU crop monitoring agency downgraded the EU wheat crop for the 3rd consecutive month, yield forecast for soft wheat and winter barley are now below the 5-year average.
Forecasts for the Russian wheat crop continue to grow, analysts SovEvon have now forecast this crop at 89.2MMT, a new record and by some distance.
Grain Committee & Policy News
DAFM have confirmed that the budget for the straw incorporation measure has been increased €10m to €15 million. Over 52,000ha have been signed up to the scheme in 2022.