I’m fed up with talking about the weather, but I can console myself with the fact we have grabbed every opportunity so far and progress is not too bad.Excellent harvests across Europe will bring prices down
EXCELLENT harvests so far this season across Europe have the potential to bring prices down. With a 20 million tonne surplus expected in the European Union growers are likely to face direct competition from the Black Sea region.
Oversupply and bigger crops have already seen wheat and protein values weaken and the situation is likely to continue as reports from the UK so far predict an excellent harvest.
David Sheppard, managing director of Gleadell Agriculture, said: “The market is at a bit of a crossroads at present. The volumes coming out of Bulgaria, Romania and the Ukraine are sizeable and are setting the benchmark for not just the Spanish Mediterranean market but also north Spain – both traditional UK markets.
“More worryingly, aggressive offers are being made into Brittany and ‘any origin’ feed wheat (eastern European origin) has traded into north Germany.
“Current price parities are not favouring UK wheat – and the downside is £5 to £10 at present.’
Beans have followed the wheat market so far with premiums also falling as buyers expect the oversupply to tilt the market in their favour.
Malting barley too has seen a fall as one of the best harvests in recent history has pulled premiums in the EU down from a peak of around £70/tonne to £12-25/tonne, dependent on variety.
Oilseed rape trading has seen a flurry of activity with harvests in Europe almost complete and yields considerably higher than last year.
Oilseed rape trader, Jonathan Lane, said: “We estimate that the oilseed rape harvest is near the halfway mark as we move into August.
“Yields to date have been variable, from 2.95 to 4.95 tonnes per hectare and we are still working from a national average for the UK of 3.3 tonnes per hectare to give us a crop of 1.902 million tonnes – almost unchanged on last season, despite a 9 per cent reduction in the planted area.”
In Europe, French harvest is 90 per cent complete at a 3.5 tonnes per hectare average, while in Germany the harvest was expected to be completed this week with yields estimated at 3.6 tonnes per hectare.
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