There was continued downward pressure on commodity prices last week but at a slower pace according to the IFA’s latest grain market update.
However, it also noted that the release of the USDA’s world agricultural supply and demand estimates last evening saw soy bean, wheat and corn futures for nearby contracts fall by 2% to 3% on the back of forecasts for significant increases in stocks for the 2014/15 crop year. French milling and London feed wheat futures followed US prices lower with November ‘14 contracts closing the day at €181.25/t and stg £130.50 respectively.
In the latest report, world maize carryout stocks for the current crop year (2013/14) are forecast to rise by 4.4mt to 173.4mt with stocks for the coming year (2014/15) predicted at 188mt, an increase of 5.4mt on previous estimates. On the soybean front, 2013/14 world closing stocks are seen up by 70,000t to 67.24mt with a significant rebuilding of stocks for the following crop year to 85.3mt, an increase of 2.4mt on previous estimates.
The IFA says Irish dried spot wheat prices were lower again this week ranging from €195/t to €196/t compared to €198/t to €200/t last week. Barley prices were unchanged at €166/t to €168/t. New crop wheat for November collection is lower ranging from €176/t to €178/t compared to previous week quotes of €180/t to €182/t.
In terms of new crop barley for Oct/Nov collection the IFA says the trade was steady from €165/t to €167/t Old crop spot maize was down €1/t on the week trading at €177/t but new crop on a run until April was trading €3/t lower at €177/t.