In a grain market that seems to be continuously dominated by talk of big supplies and falling prices, Brett Bros in Kilkenny announced this week that they will pay €140/t for 20% moisture winter feed barley excluding VAT. This is an important development as it helps to establish a price in a market where buyers have been afraid to quote against a background of market uncertainty.

Brett’s have a big requirement for barley to produce feed. The decision to set this price now is a balance between securing the quantities of Irish grain they require for their feed mill and also attempting to pay growers a price that better represents the cost of production than many of the suggestions of a sub €130/t green price.

Merchants are generally in a quandary over prices, but acknowledge the futility of current price indications for long-term production. Margin remains the biggest problem for growers and IFA’s Liam Dunne has again called on input suppliers to reduce their prices to help reduce production costs.

Interest in non-dry grain seems to be increasing, however. A number of buyers are now paying up to €20/t over the agreed feed barley price (when announced) for barley at 16%-18% moisture for feeding to livestock. This grain is being crimped and treated with a urea and enzyme product to preserve it and increase its effective protein content.

Winter barley performance improved as the harvest progressed with more reports of four-tonne yields over the past seven to 10 days. However, it remains to be seem how far above 3.5t/ac the average will be. The yield gap between two- and six-row varieties is generally reported to be low and grain quality is generally good.

It is worth noting that some very high protein levels have been found in winter barley (above 12%) in some regions and this can increase its value.

Winter oat yields are equally variable, with reports from 3.0t/ac up to 3.9t/ac at sub 20% moistures. The average seems to be around 3.4t/ac to date. Grain quality is very good, ranging from 52-59KPH in most places. But quality did suffer on some dry land.

Winter rape yields are also variable, ranging from 1.3t/ac to 2.0t/ac at moistures either side of 9%.

Early reports about spring barley are good, with limited yield reports indicating 3.3-3.6t/ac. Quality is good also, with specific weights in the high 60s and proteins in the 9-10% bracket, but averaging closer to 9% in the south.

Winter wheat harvesting began earlier this week, but there are very few fields cut as combines pulled out again for a day or two despite reasonable moisture levels. Quality indications are good.

Demand for straw appears to have picked up in places, but it can still be difficult to sell in surplus regions. Many growers are unwilling to sell for less than €10/4x4 bale and some have opted to chop part of their crop. An amount of straw has already been moved to regular customers, with the price to be agreed when the market settles.

Prices of €10-€12/t are most commonly reported from the areas of high demand, but it is more difficult to get these price levels in surplus areas once one grower sells for less to secure cash.