Grain price: Prices at home start strong as international markets increase

This week saw the first official announcement of Harvest 2020 grain prices by an Irish grain buyer. Dairygold came out of the blocks with a strong price which set other buyers a high bar to aspire to.

Dairygold will pay base prices of €157/t for green feed barley and €183/t for green feed wheat for Harvest 2020, along with a malting price of €187/t. It should be noted that these prices include the €5/t premium for minimum purchase terms.

Dairygold’s base grain prices for Harvest 2020 (including premium):

  • Feed barley – €157/t;
  • Feed wheat – €183/t;
  • Oats – €152/t;
  • Malting barley – €187/t;
  • Beans – €210/t;
  • Oilseed rape – €360/t.

Commenting on the announcement, the Irish Farmers’ Association (IFA) stated that the announcement “puts a floor on the market”. The Grain Committee chairperson, Mark Browne, called on all co-ops and grain buyers “to show a similar commitment to the sustainability of their grain suppliers by returning similar prices at a minimum”.

International markets

Concerns over dryness in many countries contributed to increases in the markets this week.

Looking at international markets, Matif wheat showed significant gains. The December price moved from €200.75/t on Monday (October 12) to €207.75/t on Friday afternoon (October 16). The price for December 2021 Matif wheat stood at €193.50/t on Friday afternoon.

Both US corn and wheat prices increased. The December price for corn finished at 403.75c/bu on Thursday evening (October 15) and wheat showed a dramatic rise, hitting 618.25c/bu on Thursday.

US wheat increase

Chicago Board of Trade (CBOT) wheat increased significantly on Thursday night (October 15).

According to the United States Department of Agriculture’s (USDA’s) progress report, 68% of next season’s winter wheat crop was planted as of October 11. This is 7% ahead of the five-year average for the time of year. 35% of wheat had emerged at the same time.

However, dry conditions are causing concern in areas, particularly Kansas which is one of the states producing the most hard red winter wheat in the US.

Looking at corn and the USDA’s crop progress report shows that 41% of the corn crop is now harvested. This is up on the five-year average of 32%.

Grain markets

On the continent this week dried feed barley (delivered Rouen) was trading at €187/t on Friday morning (October 15). Free-On-Board (FOB) Creil malting barley was trading at €185/t on the same morning.