Market UpdateWheat Cropping farmers are just finishing an exceptionally good harvest for wheat crops. Yields for autumn sown crops were consistently yielding 10% more than average, leading us to assume this has been the best wheat harvest seen in the last ten years. We have seen prices start to soften from the $420-$430/T mark that they reached in the December 2019 – January 2020. It is anticipated that the price will hold around the $400/T mark until the other side of winter. Traditionally, small volumes of grain get traded through the winter months. Growers tend to wait and see how cold and wet spring is to understand the likely demand. With current supply, it is not predicted to see any lift in price, unless there is a shortage of other supplements in the market.
It may be sensible to contract up to 50% of what you may need if you want to offset some risk. Barley
Harvest is also just being completed now. Yields have not been as high as wheat, however, are still above average. There was a small carry-over from last season’s crop which has added to this year’s supply. It was anticipated that the barley price was to fall as low as $360/T, but, arable farmers are reluctant at this stage to sell that low. At present, barley being contracted around the $380/T mark. Just like wheat, we do not see much activity happening through the next 4 months. |