Ireland: Forward wheat and barley prices go up on cut forecast for EU grain harvest

Forward prices for Irish wheat and barley jumped by €5/t in less than 24 hours last week after forecasts for the European grain harvest were cut by over 4 mln tonnes, Independent.ie reported on May, 22.

Glanbia's September forward price of €158/t for green wheat on May, 17 was increased by €5/t to €163/t green by Friday, May 18 morning.

Glanbia also increased its forward price for green barley (September payment) from €152/t on to €157/t.

The move was prompted by a report from French analyst Strategie Grains, which found much higher winter kill of crops in Germany, Poland and France than was previously thought.

As a result, the analysts cut its estimate for Europe's 2012-2013 wheat harvest by 4.2 mln tonnes to 122.7 mln tonnes.

Its earlier forecast had been for 133 mln tonnes.

Freezing conditions in Germany, Poland and France over the past few months were initially thought to have only had minimal impact on wheat crops there but the damage was underestimated.

Dairygold suppliers were offered a harvest price of €154/t for green barley and €159/t for green wheat on May, 17.

Irish old crop wheat prices over the weekend were quoted at €230/t to €232/t, while new crop prices moved up to over €202/t, from €193/t to €195/t a week ago.

Old crop barley traded around the €230/t mark, with new crop moving to €196/t, an increase of €8/t in the past seven days.

Meanwhile, IFA grain chairman Noel Delany welcomed the €5/t price increase offered by Glanbia as "going in the right direction", but he warned that grain growers faced considerably higher input costs this year.

"Even at €163/t, the price is a long way off 2010 prices and growers need any extra money to cover the price of inputs," he said.

"Diesel has gone up 100pc in three years and fertiliser costs have gone up €100/t in the past year."

23 May, 2012