Feed prices continued on downward spiral

Yet another slow week in the fodder front, with the market continuing to favour those buying, rather than those attempting to sell

Straw

Straw in sheds is still plentiful and offered at €8-€10 out of sheds at this stage due to the weather conditions. A small number of 8x4x3 winter barley sold for €18-€20. This is setting a low base for the first of the bales grabbed between showers this harvest. There are reports of more farmers chopping, although many are slow to chop winter barley straw, which traditionally gets a higher price than spring barley straw. Some are doing the headlands to ease operations. With farmers struggling to decide whether to chop or not, weather conditions may begin to favour those with bales already made.

Silage

The sale of silage remains constant this week, with lowest prices of €15 per bale. Prices range nationwide from €15-18. Elsewhere, deals are being made for standing crops, where farmers are anxious to move the crop. The buyers are in the driving seat, bargaining with farmers to lower prices for standing crops, with farmers anxious to move the crop and selling at prices as low as €35-40 an acre.

Hay

Hay left in fields continues to deteriorate. 4x4 bales remain on offer for as low as €18 a bale but there have been cases of deals done for €16 to €17 a bale where a farmer wanted to clear fields. Farmers that normally wait until mid-July to mow for hay have been caught by the weather. This could see an increase in baled silage which will be of lower quality due to the delay. Small square bales continue to sell well at €3/bale out of the shed. Some farmers are moving to re-bale 4x4 bales into small squares to add some value, although they should take the extra labour into account.

Wool trade holds

The wool trade continues to hold steady this week, with farmers receiving €1.40/kg to €1.50/kg for lowland wool. There was further sign of weakness in international markets.

At the second sales of the season of British wool last Tuesday (28 July), prices fell a further 3.3%. The market was mixed, with good demand for finer wools, which held their price level very well. The clearance was 58% of the 1,649,357kg of wool offered. The price was £1.39/kg average for greasy wool. The exchange rate of £1 =71c translates this to €1.96/kg, but 40-50c/kg has to be deducted to give what farmers actually get. It means UK farmers, helped by a strong sterling, are getting €156-€160c/kg for wool.

Merchants report that farmers have moved wool in larger volumes to avail of the current high prices rather than holding on for better prices as they have done in previous years. The price is running 20-30c/kg above last year’s levels.

Mountain wool is also coming in to merchants at this stage.

Up to €1.00/kg is paid for good cross-bred wool, but black scotch wool is making 60-70c/kg across the country and even less in some cases.

Fuel watch

Fuel prices have been falling in recent weeks, with prices for car diesel at the pumps dropping below 1.30c/kg again. This is seeing fuel prices vary considerably even in local areas. In a survey for 1,000 litres including VAT delivered, we found the base prices for Kerosene of 65.8c/l and agri-diesel at 71.5c/l. Even with the recent fall in prices, they remain higher than for this period last year.

Kerosene

Campus Oil, delivering only to the eastern area of the country, comes in with the most competitive price of €610 delivered in Kilkenny. Other quotes are €623-633 in areas such as Louth and Meath.

In the west of Ireland, Corrib Oil quotes prices of €655 in areas of Galway and €620 in Cork. Emo quotes prices of €697 in areas such as Galway, Kerry and Louth, with a lower quote of €623 in Kilkenny and Meath.

Green diesel

Prices are more consistent for green diesel, with an average quote of €720 from Corrib Oil. Emo quotes €785 delivered to areas of Galway and Kerry, with a lower price of €711 quoted in Kilkenny. Campus Oil again comes in with the most competitive quote of €685 – €710 in the eastern region.

CAN prices continue to fall

Farmers are finding it easier to buy CAN at around the €290/t to €295/t this week, with some deals for larger loads even lower. The latest IFA price survey has found that quotes to groups and larger individual buyers for CAN are as low as the €280/t price mark for big bags delivered on farm. However, there remains a big range with up to €360/t still quoted in Connacht. Pasture sward (27-2.5-5) is being quoted down as low as €380/t. The best price for cut sward (24-2.5-10) is €390/t. Some farmers are reporting quotes as high as €465/t. The same variation is being seen for 18:6:12, with prices quoted from €390/t to €460/t around the country.

Remember some of the price difference is due to the amount the farmer is buying on credit and if the farmer is paying on the day. Lower volumes have been spread leading to a build-up of stocks with some merchants. Farmers need to shop around as some merchants may trying to offload this stock. Many farmers are moving to get the last spread of fertiliser out in early August to get the best response, although small amounts will be put out in early September.