25 Aug 2011
GRAIN PRICES HARDEN SIGNIFICANTLY – DELANYGrain
IFA National Grain Committee Chairman Noel Delany said that grain prices continue to harden on the back of stronger international prices. London November feed wheat futures are up stg£6/t since last Friday, with Paris milling up €9/t.
Mr Delany said, “Despite some harvest pressure, dried feed wheat for harvest collection is trading at €195 to €198/t, lagging imported prices. Once harvest is out of the way native prices will begin to play catch up on imported prices, which have hardened by €7/t since last Friday.”
The IFA Grain Chairman said, “International grain prices have moved higher as the latest maize crop reports from the US point to further deterioration in this season’s crop, with some analysts predicting a yield of less than 150 bushels/acre compared to July forecasts of 158. The prospect of extremely tight carryover maize stocks, coupled with reduced production, continues to underpin the feed barley and wheat market. Milling wheat prices have also moved higher as crop yields in the States come in below expectations and weather delays the completion of the European harvest. A number of private analysts are predicting that supplies of Russian milling wheat will tighten as stocks are insufficient to supply market needs. In its latest tender to Egypt, Russia increased its price.”
Noel Delany said, “On the home front many buyers are privately acknowledging that green feed barley (at 20% moisture, excluding vat) will be at least €158/t off the combine, with wheat at least €7/t over barley. New crop Irish dried feed wheat prices are being quoted from €195/t to €197/t collected ex store, with barley €6/t to €10/t under wheat. A number of buyers are actively purchasing milling wheat. Initial quotes for grade 2 milling (9% protein, 220 hagberg) ranged from €188/t to €192/t at 20% moisture excluding vat. Buyers have attempted to pull prices in recent days offering a premium of €7 to €10/t over feed wheat for grade 2 and €14/t to €20/t for grade 1. However, with feed prices continuing to harden many growers are opting to dry and store. An export opportunity has developed for malting barley and oats. €192/t to €194/t ex store is on offer for dried oats with €170/t to €174/t on offer for green malting barley delivered merchant.”
“Growers need to remain vigilant as prices move on a daily, if not hourly basis. It is important to check out prices before making a decision and not be talked into off loading grain below its market value,” he concluded.