Grain prices remain bullish as we move into the main harvest period here in Ireland. Global wheat output estimates continue to be revised downwards, but forecasts from the world’s main maize-growing areas suggest that this crop is still carrying high potential. The consequence of a big global maize harvest for wheat and barley prices remains to be seen.

It is now very obvious that Irish yields will be down significantly, especially in winter wheat and spring barley. This is impacting in the local market, as both feed wheat and barley may not be readily available for import later in the season. As a consequence, price and price expectation are rising on a weekly basis.

ADVERTISEMENT

Growers are unwilling to sell in such a market and normal trade is difficult. Some suggest that domestic prices are actually higher than import equivalents and that this will lead to market instability. But for those who need to purchase these grains, harvest could still be the cheapest position.

Native physical prices have followed futures upwards. Spot dry wheat is now in the €225 to €230/t range, with barley around €220 to €225/t. At the moment, November prices are quoted somewhat lower for wheat at €220 to €225/t. Some consider spot prices to be inflated by the activity of merchants attempting to secure their needs at harvest time.

All UK prices increased over the past week due to currency and a stronger market.