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Grain markets strengthened at the start of the week, cancelling out a series of price cuts recorded in the previous seven days.
Barley, wheat and maize all fell in value for a variety of reasons, from increased grain supply on the back of progress with the US and EU harvests, to falling crude oil prices. Speculators also released additional stocks on the market, having been spooked by the downturn in price.
Imported barley slipped from £315/t at the end of June to £278/t early last week for forward contracts delivered this autumn, fuelling hope that ration prices may be about to ease.
Recovery
However, by Monday, imported barley had recovered to £312/t when purchased forward to December, with spot markets for August going to “price on application to purchase only”.
Markets turned as forecasts point to lower grain yields in Europe combined with an upturn in demand, as buyers concede that they cannot rely on Ukranian or Russian grain exports this year.
From a UK perspective, sterling has also weakened against the dollar following the political upheaval in Britain, making imports of grain and proteins more expensive.
While barley price has risen, maize is providing value for money, with forward purchasing contracts for this autumn at £287/t.
Imported wheat was priced at around £325/t at the start of the week.
Harvest is underway in the Republic of Ireland and while it is early days, many feed mills in NI will follow the price trends for green barley from Glanbia, the market leader for Irish grain.
Prices have yet to settle, with Glanbia floating between €265/t and €280/t last week for barley at 20% moisture.
This would convert to approximately £240/t. Normally, this price is topped up by £2.50 for every 1% drop in moisture below 20%, but with higher drying costs this year, this premium for dried grain will be significantly higher.
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