Grain price: Good crop conditions keeping prices under control

Grain markets moved down this week in Europe due to a good crop outlook and suitable weather conditions across Europe.

Wet weather and planting progress in the US has also had less of an effect on the market in recent days as the USDA crop progress report, which was released on Monday, June 17, stated that 92% of the corn acreage had been planted.

The report also stated that 77% of soybeans were in the ground. However, there was controversy surrounding the release of these figures as they were thought to be too high. An explanation was given that the figure in this report is what farmers intend to plant in that week.

As a result, it will be another few days or weeks before the official figure of plantings is known.

Rain is also slowing down the wheat harvest in the US. However, dry weather in other parts of the world may be the factor to watch out for.

Dryness in Canada

Canada, which is a major supplier of wheat on the world market, is going through a period of dryness and rain is needed in the near future to reduce the impact on yield.

Some reports from Russia are forecasting a reduction in crop production to 82.6 million tonnes. However, exports are still expected to be the countries second highest on record.

Australia has also lowered its wheat export forecast by 18%. Drought is once again the reason for lowered production. 2019/2020 production is expected to reduce by 11%.

Feed and malting barley prices at home

On the home front, Glanbia made an offer of €162.00/t for green wheat and €150/t for green barley, for the forthcoming harvest, to its suppliers last Monday, June 17.

Malting barley growers will also be watching the Free On Board (FOB) Creil price closely. It has dropped by €10.00/t in two weeks.

It sat at €178.00/t for the past two Wednesdays, June 12 and 19. This will have a negative effect on the average price at the end of the season.