Global futures prices weakened slightly over the past week on the back of continuously increasing global production numbers. This is reflected in MATIF December wheat, which has dropped back from €166/t recently to €163/t last Tuesday night.
The import tariff on maize into the EU has been halved relative to recent weeks. It remains to be seen if this will pressure prices further, but some argue that price does not have to drop to make it competitive in the market.
The announcement by Dairygold to pay €145/t for green feed barley, €153/t for feed wheat, €160/t for malting barley, €140 for oats and €163/t for beans has raised expectations within the sector. All prices include a €5/t support payment. While a few merchants had paid equivalent prices to individuals, it was not envisaged that these would be universal price levels. Glanbia is to announce its grain prices on Thursday morning.
Native prices for physical grain remain broadly unchanged due to lack of selling. This keeps spot wheat to the trade in the €173 to €175/t bracket for the coming months, with barley around €165 to €166/t. May prices remain a nominal €5/t above current levels.
Barley is regarded as being tight globally and there is concern over potential rejections for malting in many countries due to high protein levels or low germinative energy.
Delivered feed wheat prices in Britain were up £1 to £1.50/t last week (£150 Yorkshire and £142/t east Anglia) with currency being the major variable. Average UK ex-farm price (AHDB) closed last week at £139.10/t, up £0.80.