Grain price: WASDE, storms and 2021 contracts

Grain prices weren’t moving anywhere fast this week. The WASDE report didn’t bring a lot of fresh news to the market and while it reported increased yield forecasts for corn it did not have time to take into account the storm which hit the US on Monday, August 10.

In the fields at home this week, spring barley and winter wheat were the main crops to go under the knife when the weather allowed. Severe rain stopped harvesting in many areas and the wet weather forecast this weekend is expected to bring a halt to proceedings.

WASDE report

US wheat, corn and soybean production forecasts and reports were up, while EU wheat, barley and corn yields were reported to be down according to this month’s United States Department of Agriculture (USDA) World Agriculture Supply and Demand Estimates (WASDE) report which was published on Wednesday, August 12.

The report did not take into account damage to corn crops in some of the main corn-producing states caused by strong winds this week.

Storm hits US farmers

Farmers in the mid-west states of the US suffered a blow this week as strong winds hit corn crops and grain bins.

Winds of 100mph were reported in Illinois, Iowa, Nebraska and Wisconsin. Reports suggest that the storm hit Indiana most severely when it hit the area on Monday afternoon, August 10.

Grain intakes now have to secure storage ahead of the harvest in the autumn.

Reports now suggest that 10 million acres of farmland have been affected in Iowa – the country’s main corn-producing state.

IFA and Boortmalt meet

The Irish Farmers’ Association (IFA) met with Boortmalt this week following on from an obstruction of a boat of malt on August 7.

IFA president Tim Cullinan described the “huge pressure” on tillage farmers this year, due to poor yields and broken harvest conditions.

“In this environment, growers will react angrily to any actions which could undermine the sector,” he said.

Boortmalt CEO, Yvan Schaepman, apparently acknowledged current issues in the sector and reiterated the company’s commitment to “use 100% Irish malting barley when possible”.

“Despite the current market environment, it is the company’s intention to maximise its intake of malting barley, subject to complying with our food safety and quality specifications – this harvest,” he said.

Grain markets

At home, Glanbia suppliers were offered a base price of €157/t for green wheat and €136/t for green barley before any bonuses were added in.

Quinns of Baltinglass also offered growers of oilseed rape a contracted price of €360/t (delivered at 9% moisture content) for the 2021 harvest.

On the continent this week feed barley (delivered Rouen) was priced at €165.50/t on Friday afternoon. Free-on-Board (FOB) Creil malting barley was at €172/t at the same time.