The futures market for feed wheat has dipped since last week’s rally to below £150/t as significant amounts of old crop are still on the market and maize prices look depressed across the globe.

Maize is currently cheaper to deliver to the central belt of Scotland than domestic wheat. The historic low price of oil is pushing more maize from the fuel market to animal feed. Meanwhile, new-crop wheat for harvest 2020 is being bought at £165/t, which is down £10/t on the week.

The oil price crash is having the most significant impact on the oilseed market, with prices for old and new crop at £290/t.

The malting barley market has seen some impact on production as distillers have struggled to cope with COVID-19 operation rules.

Some distilleries closed or reduced production as they tried to ensure employees kept the required distance from one another, with shortages of boxes and bottles also having an impact. However, there is optimism that plans are in place to return to more normal production in the coming weeks.

Market

Feed barley is trading at the low £120s per tonne in the UK at the moment for old crop. New-crop barley looks to be a firmer market as dry and cold weather on the continent doesn’t indicate bumper yields. With warmer weather forecast in the coming weeks yield estimates could fall further, helping barley prices strengthen.