IFA urges farmers not to sell grain short as prices turn the corner

Farmers have been urged not to sell grain short this harvest, as prices have turned the corner.

Irish Farmers Association Grain Committee chairman Noel Delany said the situation has been helped by a number of factors.

These include a developing world weather premium and strong local demand for grain directly from livestock feeders.

“This has put much needed competition into the market,” he said.

Mr Delany said there is a significant weather premium developing in the world grain and oilseeds market.

This is due to the late developing United States maize and soybean crops which are becoming increasingly susceptible to damage from an early frost.

“Investor sentiment has become less bearish of late as market and crop fundamentals take centre stage,” he said.

Mr Delany said the more important price driver at local level has been the significant increase in demand for grain from dairy and dry stock farmers.

Many livestock farmers have switched to barley as wheat supplies are limited, he said.

The increased competition for grain has lifted local prices by €10/t to €15/t over official merchant quotes.

“Growers should examine all alternative market options this harvest to maximise their returns.

“Current low prices coupled with close to average yields and significantly increased production costs will see many growers struggle to break even this harvest,” he said.

Mr Delany said committed growers are questioning the long-term viability of Irish grain production.

He said this arises from the relentless cost price squeeze and upcoming cuts to the Single Farm Payment, both of which have been compounded by difficult growing seasons.