International grain prices continue to strengthen, with native dry wheat now gone above €270/t, with barley well above €260/t.
However, their imported equivalent prices have now moved to €290/t and €285/t, respectively. Imported maize remains at €280/t or higher.
While supply and demand issues are the basic fundamentals behind these price moves, freight cost has become a serious additional element in the cost of imports, regardless of destination.
As of now, it appears that bulk freight costs have more than doubled
Physical prices are now being heavily impacted by actual availability and driven by both the cost and availability of freight.
As of now, it appears that bulk freight costs have more than doubled and look set to rise further as some ships are being decommissioned because of the significant investment required to upgrade them.
Futures market prices have increased considerably in recent weeks with the MATIF December wheat contract closing on Tuesday (19 October) night at €273.75/t and up a further €2/t on Wednesday trading at the time of writing. This contract was €244.50 at the end of the first week in September.
On Wednesday of this week, Glanbia offered €231/t for green wheat for next harvest and €221/t for green barley
The futures price for December 2022 is also up considerably and floating around €240/t currently.
On Wednesday of this week, Glanbia offered €231/t for green wheat for next harvest and €221/t for green barley.
These prices have been supported in recent years by an additional €10 or more per tonne, meaning a possible final price of €241 (wheat) and €231 (barley) plus per tonne.
Oilseed rape prices are also very strong with November 2021 contracts likely to exceed €700/t during Wednesday trading and November 2022 price gone above €555/t.