Grain price: Increase this week as harvest starts
Markets looked a bit brighter this week and Glanbia increased prices offered to growers.
The Chicago Board of Trade (CBOT) wheat hit its highest price in almost three months this week. On Tuesday evening, July wheat closed at 526.75c/bu, only to jump to 550.75c/bu on Wednesday. By Thursday, it had decreased back to 535.25c/bu.
Reports of sales of US wheat to China may have helped this rally. The US also reported large sales of corn and soybeans this week.
Variable harvest results in Europe are also playing a part. This week, Stratégie Grains estimated that the soft wheat harvest in the EU will decline by approximately 11.5% from 2019.
The main declines in yield are in France and southeastern Europe.
US corn in good condition
As of July 12, 48% of the US corn crop was rated in good condition, while 10% was said to be in excellent condition. 30% of the crop was reported fair, while just 12% was rated poor or very poor.
According to the crop progress report, 48% of soybean crops are now blooming. As of July 12, 46% of these crops were rated in good condition. 8% were reported to be in excellent condition and 34% were rated fair.
Last week’s World Agricultural Supply and Demand Estimates (WASDE) report, published on July 10, estimated wheat production down, as well as use and exports. EU wheat and barley production are both expected to decline this season.
Corn production is expected to stay the same globally. Reductions due to a decline in planted area are expected in the US and Canada, while Canada increased its barley area.Also Read: EU wheat and barley production estimated down
This week, Glanbia offered growers €158/t for green wheat and €139/t for green barley. These prices are base prices and do not include any bonus payments for co-op members.
On the continent, a spot price of €164/t was available for feed barley (delivered Rouen) on Friday afternoon, July 17. Meanwhile, a spot price of €177/t for Free-On-Board (FOB) Creil malting barley was available.