Grain prices fell sharply the week of 24 June, 2022 with downward sentiment taking hold.
MATIF Sep 22 closed 23 June at approximately €360/t – nearly 20% down on the peak in mid-May.
Rapid progress in US wheat harvesting, an early European harvest and a very large Russian forecast appear to be exhibiting pressure on all commodity markets.
Paris rapeseed (Nov 22) closed at €718.50 on Tuesday (21 June) and dropped to €657 by Thursday (23 June) evening, the lowest price since 4 March this year.
On Wednesday 22 June, Glanbia offered €295 for green barley and €310 for green wheat – down €15/t on the previous week.
Dried native prices are difficult to secure given the high daily volatility in markets.
FOB Creil malting barley didn’t fall as sharply as other grains this week with the price settling at €435/t. The rolling average for Boortmalt suppliers is now €436.09/t.
Global grain supply and demand
There are still bullish supply factors underpinning global grain prices such as the ongoing war in Ukraine, drought-stricken US wheat crop and below average yields across southern Europe.
MARS, the EU crop-monitoring agency downgraded the EU wheat crop for the third consecutive month. The yield forecast for soft wheat and winter barley is now below the five-year average.
Meanwhile, forecasts for the Russian wheat crop continue to grow. Analysts SovEvon have forecast this crop at 89.2MMT – a new record and by some distance.
Grain committee and policy news
The Department of Agriculture, Food and the Marine has confirmed that the budget for the straw incorporation measure has been increased from €10 million to €15 million. Over 52,000ha have been signed up to the scheme in 2022.