Feed prices are on the rise as exchange rate and low yields affect the price of grain.

On enquiry, several merchants stated that imported barley prices have risen by €10/t to €15/t over the past month, and with sterling weakening to €1 = 91p, this converts to an increase of £9/t to £13/t.

With imported barley now costing £150/t to £155/t, actual purchase prices being quoted to farmers are in the region of £160/t or higher, depending on the quantity purchased and transport charges. Wheat is now trading in excess of £170/t for ex-merchant stocks.

In early July, grain prices were typically £145/t to £150/t for barley, with wheat prices trading around £10/t above this.

Merchants who import grain from the Republic for inclusion in animal feeds indicate that prices are rising quickly with green barley being purchased from €144/t to €150/t this week.

In addition, merchants state that it is becoming harder to purchase grain in the Republic of Ireland without offering higher prices.

With a rising market, cereal producers are reluctant to sell and many are holding back in the hope of higher prices.

While reduced grain yields also mean less grain coming on to the market, the exchange rate is undoubtedly having the biggest effect on feed prices given that grain price is often traded in euro.

Proteins are traded in dollars and holding relatively steady with soya around the £300/t mark. Distillers is selling from £165/t to £170/t.

Feed prices

With cereals making up the bulk of most livestock feeds, merchants are having to increase ration prices.

Most beef finishing rations have increased by £10/t to £12/t on last month and now selling from £196/t to £210/t depending on product range included.

General purpose 16% cattle rations have risen also and are now selling from £198/t to £205/t with deals on offer for quantity and payment option.

Straw

Straw prices are also strengthening with reports this week of 4x4 round bales selling from £12 to £16 collected in the field. Price increases are more evident further north.

Imported straw from the Republic is approximately £42/bale for 8x4x4 with £32/bale paid for 8x3x3. As with grain, reports are that straw is becoming harder to source south of the border.