Trade your grain farm to farm, IFA advises
But once the harvest was complete and the store doors closed, grain and compound feed prices to livestock farmers would rise, predicted IFA national grain committee chairman Colum McDonnell.
He advised growers to trade their grain farm to farm, sell it for crimping or caustic treatment, aerate and store it, acid treat and store whole or rolled grain, or do a deal on merchant drying and storage.
“The market for farm-to-farm trade has grown considerably in recent years and will grow further, given that livestock compound feed rations are currently retailing from €200 to €240 per tonne,” he said. As a result, it will take two tonnes plus of green grain to pay for a tonne of compound feed ration, according to Mr McDonnell.
“Sourcing grain direct off the combine will add euros to both growers and feeders’ bottom line.” He said growers should not be panicked into offloading grain without a price commitment, when higher priced alternative market opportunities exist.
Meanwhile, imports are likely to set a low price level, due to bumper yields across the EU leaving a supply surplus. One of the biggest ever surpluses of EU spring barley is available due to this year’s record crop, and reduced demand due to the economic crisis and lower beer sales.
Rapeseed output for the EU-27 this year is expected to reach a record 19.5m metric tonnes.
Including carryover stocks and imports, the 2009/10 supply of EU rapeseed is forecast at 23.4 million tonnes, eclipsing last year’s record by 200,000 tonnes.
Meanwhile, the US Department of Agriculture predicts the second largest maize crop in US history, and the biggest-ever soyabean harvest. As a result, farm-gate prices for both crops are the lowest in three years.
