Sources in the feed trade have indicated that livestock farmers can expect another price increase during September and October, with £10-20/t set to be added to the cost of compound rations, as barley and wheat prices continue to escalate.
Such is the volatility in grain markets, feed merchants have faced difficulty in securing long-term contracts that normally provide a degree of price stability ahead of the winter feeding period.
The increases will bring the cost of high-protein dairy rations to around £260/t. A 16% general-purpose beef ration will be around £230-235/t, with beef finishing rations coming close to £220-225/t.
Demand
Rising cereal grain prices are fuelling this increase, with merchants reporting rising demand for animal feed across Europe this summer, set against tighter supply.
Earlier this week, grain forecasts for the EU were revised downwards, as market analysts predict lower yields as a direct result of the dry conditions.
Estimates for the EU wheat harvest have been cut by 13m tonnes for 2018.
Currency issues are also affecting prices. With sterling weakening against the US dollar and the euro, it has become more expensive for local feed merchants to import straights used in animal feed.
However, there are some positives, with forecasted yields of EU maize and soyabean expected to increase on last year. Both commodities have remained competitively priced this summer.
Local prices
Prices for imported barley are now running close to the £205/t mark this week, with reports of £190-200 being offered for local barley coming off the combine.
Grain prices are also rising south of the Irish border. With the harvest of spring cereals well under way, reports suggest that €200-220/t is being offered for green barley.
However, maize meal is selling below the cost of dried barley and is extremely good value, considering it has a higher energy and protein content.
Straw
Round bales of barley straw continue to sell for £20-25/bale, depending on availability and transport options, keeping straw prices close to £150-160/t. Early reports indicate straw yields are at best average for crops planted in March.
Read more
International grain markets: further yield reductions in Europe and Australia
Big variation in spring barley yields
Sources in the feed trade have indicated that livestock farmers can expect another price increase during September and October, with £10-20/t set to be added to the cost of compound rations, as barley and wheat prices continue to escalate.
Such is the volatility in grain markets, feed merchants have faced difficulty in securing long-term contracts that normally provide a degree of price stability ahead of the winter feeding period.
The increases will bring the cost of high-protein dairy rations to around £260/t. A 16% general-purpose beef ration will be around £230-235/t, with beef finishing rations coming close to £220-225/t.
Demand
Rising cereal grain prices are fuelling this increase, with merchants reporting rising demand for animal feed across Europe this summer, set against tighter supply.
Earlier this week, grain forecasts for the EU were revised downwards, as market analysts predict lower yields as a direct result of the dry conditions.
Estimates for the EU wheat harvest have been cut by 13m tonnes for 2018.
Currency issues are also affecting prices. With sterling weakening against the US dollar and the euro, it has become more expensive for local feed merchants to import straights used in animal feed.
However, there are some positives, with forecasted yields of EU maize and soyabean expected to increase on last year. Both commodities have remained competitively priced this summer.
Local prices
Prices for imported barley are now running close to the £205/t mark this week, with reports of £190-200 being offered for local barley coming off the combine.
Grain prices are also rising south of the Irish border. With the harvest of spring cereals well under way, reports suggest that €200-220/t is being offered for green barley.
However, maize meal is selling below the cost of dried barley and is extremely good value, considering it has a higher energy and protein content.
Straw
Round bales of barley straw continue to sell for £20-25/bale, depending on availability and transport options, keeping straw prices close to £150-160/t. Early reports indicate straw yields are at best average for crops planted in March.
Read more
International grain markets: further yield reductions in Europe and Australia
Big variation in spring barley yields
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