Grain price: Bearish for corn…
Grain prices saw an increase this week as Australia revised its production figures down, with the possibility of further reductions as a clearer picture develops.
Corn is an anchor
Speaking at the Glanbia Ireland Grain Quality Awards on Thursday, February 20, John Bergin the commercial director at R and H Hall gave some opinions on the season ahead.
John was bearish for corn and expects a drop in corn price due to a substantial increase in area. This may impact on Irish prices more than we think as John described corn price as “an anchor” to the price paid for feed grain.
John also noted that what’s positive for wheat is not always positive for barley. Looking ahead to harvest that crop may be under price pressure.
UK crop areas
In the UK, the Agriculture and Horticulture Development Board (AHDB) has released forecasts for 2020 crop areas.
The wheat area (all wheat) is forecast to be down by 17%, while the winter barley area is estimated to be down by 23%.
Spring barley area is expected to rise by 47%, while oats are expected to rise by 26%. Oilseed rape area is expected to be down by 32%, while pulses and arable fallow are forecast to rise by 27% and 50% respectively.