Harvesting of winter cereals is under way in Britain, and while it is early days Agriculture and Horticulture Development Board (AHDB) price forecasts put new season wheat purchased for delivery in November around £171/t – up £2 on last week.

Native winter barley prices stand at £131.50/t, up £3.50/t on the previous week.

Meanwhile, an annual survey of growers by AHDB points to tighter supplies of wheat in 2020, with planting area down 25% year-on-year.

Winter barley planting is down 34%, but is offset by a 52% increase in spring barley planting, of which 74% is understood to be malting and brewing varieties.

While local feed merchants in NI are reluctant to commit to prices until the harvest gets under way, spot prices for green barley in the Republic of Ireland are currently trading at €140/t (£126/t) at 20% moisture.

Allowing for €2/t drying costs for every 1% reduction, dried barley at 15% would be in the region of €150/t, or £135/t based on current exchange rates.

Outlook

Barley prices may well change as the harvest moves into full swing, and if the market for malting grain in Britain is re-established as COVID-19 restrictions continue to ease.

However, potential low malting and brewing demand could increase the amount of barley destined for animal feed, and ultimately affect price.

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Early price reports on winter wheat and barley being harvested in Britain indicate that grain markets are generally positive