Ups and downs of grain market
The grain markets have had a volatile few days!
A fortnight ago with the dry weather the wheat market was roaring only to be brought down with the talk of rain. Then the rain came to not very much and the weather in Russia warmed up a lot which led to a £3.50 jump on June 4. Where we go from here is anybody’s guess.
You would have thought that with the smallest wheat harvest for 30 years, at somewhere around 10 million tonne (which is four million tonne less than we use domestically), that the market can only go up, but beware of imported maize which I think will keep a very firm lid on the market, particularly as the USA have sown their biggest maize crop for 33 years.
Six weeks ago we were going to be swamped with spring barley, now after all the hot weather the debate is whether there will be a crop at all!
Barley new crop is trading at £30 below wheat which to my mind is too much. Hang on for a while and see if there is an improvement.
Keep well and let’s hope 2020 doesn’t have anything else to throw at us.
David Roberts, of G.O Davies (Westbury) Ltd grain merchants
