Grain Market Update
Feed demand has remained strong due to the continuation of poor grass growth during May. Spring cereals crops were generally sown in good conditions, however, the dry and cool conditions initially delayed development. It is hoped the rain during May followed by higher temperatures will lead to improved growing conditions.
Following the spike in world grain prices last month, Irish new crop prices have now eased somewhat, following world market trends. Green harvest prices are now back below the €180/t for barley and around the €190 mark for wheat.
Meanwhile, Irish November rapeseed prices have been pushing higher to €505/t.
The FOB Creil July 2021 malting barley price, is trading around €220/t. The pricing tracker for those supplying Boortmalt started on April 15th and is currently averaging €222/t.
Irish Native / Import Dried Feed Prices 27/05/2021
|Nov 2021 €/t
|FOB Creil Malting Barley
|222 (July 2021)
Matif wheat front month prices eased from the April highs while December is now at €209/t. A combination of more favourable weather, and doubts around Chinese demand have contributed to the recent market moves. Recent rain and the forecast for warmers weather, has improved the outlook for crops in Europe and the US. There are some cold weather worries around spring crops in the US, however it doesn’t appear severe at the moment.
Maize prices have been volatile with Chicago futures jumping 6% in one day this week. However, they are significantly back from April highs as US plantings are now over 90% complete. Rumours of a reduction in Chinese buying spooked the market earlier in the week however improved orders towards week end quashed this sentiment.
The dry conditions in the Mato Grosso region of Brazil are continuing to affect the Safrinha crop, with production estimates now predicting an 11% drop in production from last year.
Soybean plantings in the US continue to be on track. However, like maize, stocks are at historic lows, which has driven prices to seven-year highs.
Activity since last National Council
- The new CAP is now at a critical stage, with the Trialogues between the EU Council, Commission and Parliament set to finish at the end of May. Members of the grain committee have lobbied all their local TDs on the disastrous effect which the current CAP proposals would have on the tillage sector. The Chairman, along with the other IFA commodity chairmen, met with Minister McConalogue to discuss CAP issues.
- The applications for the Straw Incorporation Measure (SIM) closed on the 15th of May however, farmers had until May 31st to make amendments. Preliminary reports from DAFM indicate that at least 38,000ha have been applied for with an almost equal split between the four main crops of oats, wheat, barley and OSR.
- IFA were successful in getting a derogation for the control of certain wild birds namely wood pigeon.
- A recent meeting was held with Boortmalt to update on malt demand, plantings etc. In general demand for malt was described as strong with the UK on trade reopening. It was expected that Boortmalt would require at least 150,000tonnes of barley this season.
- The recent incidences of blackgrass being found in wildflower mixes and the threat this represents to the Irish tillage sector have been highlighted by the committee. IFA intend to raise this issue again with DAFM regarding classifying it as a noxious weed and to demand that only seed produced in Ireland should be used in Wildflower mixes.
- A new management committee for the grain committee has been elected.
- IFA held a meeting with Northway compost to discuss straw availability for this season.
- The chairman and a number of committee members attended grain discussion groups in Kildare and Meath to discuss issues, particularly CAP, which are facing the tillage sector.
- IFA have issued a press release calling for improved labelling of animal feedstuffs.
- IFA participated in the Copa.Cogeca meetings to discuss the implications of the next CAP.
- The new CAP is now at a critical stage, with the Trialogues between the EU Council, Commission and Parliament near completion. The grain committee will continue to lobby for a positive outcome for the tillage sector particularly in relation to convergence, eco schemes and GAECS.
- Another meeting with Valeo Foods will be held regarding the use of Irish Milling wheat in local flour production.
- There will be a meeting between the ISTA and IFA.
- IFA will be continuing its campaign to deal with the threat posed by Blackgrass.
- The campaign will continue regarding the absence of a level playing field in relation to third country feed imports particularly maize. The lower carbon footprint of native cereals and the tillage sector in general will be promoted.
- IFA will be calling for the Carbon Adjustment Mechanism (CBAM) to be introduced for agriculture in Europe.