We have seen a very volatile market so far this week with November 2019 LIFFE wheat futures reaching a high of £159.50 yesterday afternoon - £17.50 higher than 2 weeks ago. These market movements are off the back of the adverse weather conditions they are continuing to experience in the US, which in turn is causing huge delays in Maize and Soybean planting, with the latest planting dates getting nearer.
The rally in prices has brought opportunities for those wanting to sell forward at respectable harvest prices and to fix spring barley contracts at decent money. Old crop prices have also recovered slightly, and with Yorkshire buyers back in the market for June and July at present, this is a market worth pursuing for those with old crop left to sell.
On our side of the Atlantic, crops are looking very well with both winter and spring crops benefiting from the rain we have received over the last few days. Potato crops will be very grateful for the moisture with many now visible in the row and first blight sprays not far away. The last of the T2 applications will be going onto winter wheat crops this week and all winter barley crops fully shot.
We had a brilliant evening last night looking round the trials at the Syngenta platform site at Aldbrough. The work they do with their HYVIDO hybrid barley varieties and the benefits they can offer with black-grass suppression over wheat and conventional winter barley was very clear to see. Thank you to all our customers who joined us - if you are interested in some Hybrid barley seed for next season please contact the office.
On 26th May, the USDA put corn planting at only 58% complete in comparison to the expected 63% …32% down on last year and the 5-year average. This delay in planting is causing serious yield concerns in the US with some predicting a reduction of 40-50MMT – a potentially significant loss to the world’s grain balance sheets.
These major concerns triggered the speculative funds in the US to buy back the record short position they were at on the CBOT corn futures this year – covering over 300,000 contracts since 10th May. In turn this has helped the UK new crop values so far this week.
Markets have opened lower this morning in comparison to yesterday after some on farm selling due to the rally in prices.
US farmers can plant 10% of the crop in day, providing the soil conditions and weather allow. Close attention to the weather forecasts needs to be paid over the next week to monitor progress and the likelihood of farmers having to take out the ‘prevent plant’ insurance rather than planting any crop at all.
Weather concerns are also developing in the Black Sea regions due to the dry conditions. Hot temperatures are forecast in Russia and Ukraine – these are certainly factors to watch over the coming days.
Old crop prices have followed the upward trend but to a lesser extent. The lack of demand for old crop is still weighing on prices with values at a significant discount to those we saw at the beginning of the year – for those with old crop left, the opportunities we have seen so far this week with a small spike in prices are worth pursuing.
Old crop feed barley trade is centered around farm to farm demand with very little interest from compounders.
New crop continues to trade in the £120s/t, please keep in touch with the office for up to date prices.
We still have a wide range of both winter and spring malting barley contracts available for harvest 2019. For those with a futures based contract in place but still to fix the price, it is worth watching the futures whilst they are at these levels and consider fixing.
Please contact the office for further details if you are interested in a malting barley contract.
Oilseeds have also experienced a upward movement in price this week. Like corn, soybean planting in the US is well behind the average with only one third of the crop in the ground, compared to 74% last year and 66% on average.
According to today’s Euronext COT report, speculators increased their net long position by nearly 800 contracts to 6.5K lots on Euronext rapeseed in the week ending 24th May.
Please contact us for quotes for outstanding fertiliser supplies.
Although the big fertiliser companies are not likely to come out with their terms for new season fertiliser for another couple of weeks, we have been offered the following high quality granular products from one of our suppliers which will be very competitive on both quality and price:
26N + 33 SO3
26N + 13 SO3
29N + 9 SO3
24N + 60 SO3 Ammonium Sulphate
Please enquire for prices.
With trials season starting, it is a good time to start thinking about varieties for next season. We are beginning to get some bookings for seed for the coming autumn, please get in touch for information on our varieties - seed is very limited for some of our new varieties so please get your order placed.
As mentioned above, we had an interesting evening with some customers last night looking round Syngenta's trials at Aldbrough and the work they do with their HYVIDO hybrid barley range.
For hybrid barley growers or those interested in some hybrid barley seed for next season, please contact us for prices and further information. The varieties we have available are:
For any Countryside Stewardship mixes, Game Cover, Mustard and Maize seed, please contact the office.
We have got the dates for our trials days/evenings for summer 2019. Please contact the office and visit out website for details.
Bayer trials site - Stockbridge technology centre, Cawood 26th June 2019
KWS trials - East Heslerton 2nd July 2019