As the wet weather down south has stopped planting, the price of cereals has risen through fears of fewer high-yielding winter crops planted. However, with English farmers able to sow crop into December, there is still time to get the drill out before opting for spring cereals.

This rising market saw feed wheat futures (May-20) gaining £5.05/t last week, with prices today over £155/t, so it is tempting many farmers to sell loads for next year’s harvest. Many merchants are offering hedge bets with half the crop at £20/t above wheat futures and the rest at the spot price.

Those who sold all their malting barley at harvest this year would have been paid closer to £130/t without a contract.

There looks to be at least a £30/t variation for cereal crops when comparing harvest prices with now.

Increasingly, arable farmers have to be market analysts to maximise their crops’ value

This can be worth over £100/ac, which is a significant fluctuation for farmers to cope with.

Globally, grain supply saw little change overall. Global wheat production estimate is slightly higher at 765.55Mt, up 0.32Mt from the last report. In the southern hemisphere, poor crops in Argentina and Australia saw a lowering of production estimates.

However, this has been offset by a rise in production forecast for Russia, EU and Ukraine.

Increasingly, arable farmers have to be market analysts to maximise their crops’ value. There are tools and options for farmers to hedge their bets and limit risk. Some contracts are coming into play in the livestock sector but it is still marginal.