High grain prices predicted to continue until mid-2013

Escalated grain prices will continue until the middle of next year, according to Bob Young, chief economist with the powerful American Farm Bureau Federation in Washington.

Prof Young, whose organisation represents almost 6m farmers across the US, told Irish agri-food leaders attending yesterday’s ASA conference that severe drought had led to a reduction of 30% in US maize yields.

“Like Europe, the US is no longer in the business of holding grain reserves,” said Prof Young. “So when you combine no reserves with a ‘short crop’ and strong demand, the inevitable result is escalating prices.”