Low grain prices have made tillage growers shy away from selling any of their crop forward in the early part of 2017. With forward prices of around €127/t to €130/t on offer from Glanbia, Dairygold and Liffey Mills, there is little incentive for farmers to sell now.
Low grain prices have made tillage growers shy away from selling any of their crop forward in the early part of 2017.
With forward prices of around €127/t to €130/t on offer from Glanbia, Dairygold and Liffey Mills, there is little incentive for farmers to sell now.
They will hope for market forces to shift in their favour between now and harvest time.
“Forward prices are not that attractive to farmers now,” said Sean O’Sullivan, Dairygold’s agribusiness manager. “The reality is that grain prices are at a low ebb. Based on current dried price, we would be offering €128/t for green barley at harvest, with payment in September.”
Glanbia is offering €127/t for green barley at harvest.
Pat Ryan of Liffey Mills said that it was offering €130/t for green barley but there is currently “no movement whatsoever”.
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“Nobody will forward sell at a bad price,” he added.
Barley
This is shaping up to be the fourth year of poor grain prices, with barley sold in the range €133/t to €138/t since 2014.
Ominously, feed mill buyers are still holding off on buying raw material grain in the belief that prices could fall lower this year.
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