Low crop estimates spur grain price hikes
Delivered prices into Belfast are reported higher for both feed barley and feed wheat, respectively by €9.75 per tonne, to €160, and by €4.87, to €168.75, compared to last week.
Prices rose as the British government estimated its 2006 cereal crop area was 2% down on 2005 for wheat, and yields were slightly up.
Barley output is also estimated to be lower.
EU 2006/07 wheat output estimates from Strategie Grains were down 0.9m tonnes, and the grain market analysis company said exports are higher.
It also revised EU barley output slightly downwards, but adjusted the potential malting barley availability upwards.
The EU figures have added to market excitement caused by an estimate of global wheat stocks at 25-year lows, Ukraine suspending wheat exports, and wheat future prices in the US reaching 10-year highs.
With the crop forecast further reduced in Australia, exports are to be suspended from its east coast.
The confirmation that Ukraine is to introduce export quotas pushed international wheat future prices to their highest levels for 10 years, in the past week.
It was also revealed that US maize tonnage is predicted to be the third largest ever, but that heavy demand will absorb all the crop and reduce stocks by 50%.
In the EU, the Commission’s Grain Management Committee has responded to the global situation by changing the application procedure for export certificates, paving the way for restrictions if too much grain starts to flow out of Europe.
