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Early indications from animal feed merchants are that new-season grain imported this autumn will be trading at prices in excess of £160/t.
After applying handling and transport costs, this could see barley and wheat prices moving from £170/t to £180/t, which is a significant increase from last year when dried grain was selling at around £120/t to £130/t.
There is no indication, as yet, of prices for native grains, either sold directly off the combine, or dried to 15% moisture, but prices will be up on recent years. Poor weather across key grain-producing regions in the UK and EU has seen delayed planting of arable crops.
The knock-on effect has seen grain merchants looking to secure adequate volumes of grain for animal feeds. With later planting possibly leading to lower yields, grain prices have been rising.
Prices stabilising
Animal feed prices have already seen several increases during April and May, with imported grain selling above £190/t when all handling and delivery costs are applied.
However, prices have stabilised in recent weeks helped by slightly stronger sterling against the euro.
Soya has also seen some downward price movement in recent weeks.
Imported soya is being purchased by merchants on spot markets at around £330/t before handling and transport costs.
These would normally add an extra £10/t to £20/t to the final purchase price for farmers. Last summer, soya was being imported for £280 to £290/t.
If soya holds at current levels through the summer period, it will result in concentrate ration prices being significantly higher this autumn than previous years.
Last September, a general purpose cattle ration was trading at £190/t to £205/t, depending on the feed products used. The same ration is currently trading closer to £220/t.
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