Grain price: Jump in the middle of the week
Grain markets took the rise farmers had been waiting for this week ahead of the release of the Word Agricultural Supply and Demand Estimates (WASDE) report on Friday (October 9). However, prices came back down towards the end of the week.
Matif wheat went over €200/t, while Chicago Board of Trade (CBOT) wheat went over $6/bu on Wednesday (October 7).
Corn prices in the US also increased this week, as export prospects improved. Futures prices for corn for next March went over $4/bu.
Dry planting conditions in the US, Russia and Ukraine contributed to some of the increases in prices.
US crop condition and progress report
25% of the US corn crop was estimated to be harvested as of October 4 according to the United States Department of Agriculture’s (USDA’s) Crop Progress Report.
Of the remaining crop, 14% was reported to be in excellent condition; 48% in good condition; 25% in fair condition; and the remaining 13% was in poor or very poor condition.
38% of soybeans were reported to be harvested, while 52% of the winter wheat crop was estimated to be planted in the same report.
On Thursday (October 8), the US Secretary of Agriculture, Sonny Perdue, announced that the USDA has invested $22 million of the $100 million in grants available to increase American ethanol and biodiesel sales.
The funds will be used in 14 different states and are projected to increase ethanol demand by nearly 150 million gallons according to the USDA.
Corn is used in ethanol production in the US and as demand decreased for corn this year, as a result of the Covid-19 pandemic, US corn price decreased. Low corn prices often result in low barley prices for Irish farmers.
Irish growers continue to await a final harvest price and are being paid on account.
On the continent this week, feed barley (delivered Rouen) was trading at a spot price of €176/t. Free-on-board (FOB) Creil malting barley was at €180/t, while corn (FOB Bordeaux) was trading at €177/t.
Some of the main markets from around the world are outlined below.