News

Cereal markets continued their Bull Run. Thursday saw new contract highs on LIFFE futures which was seen as another positive element, especially by technically based traders.

Export trade has continued apace with cargoes trading for spot shipment through to spring 2011. The order flow is similar to the last few weeks with spot shipments to Spain, Portugal & Ireland, while deferred shipments are destined for Northern Europe.

Domestic consumers have taken some tentative steps, but mainly for prompt delivery. This has been enough to push ex farm wheat for summer collection to £140 ex farm. Millers remain on the sidelines. Barley harvest is moving to the half way point nationally and prices have moved forward with £110 ex farm being paid for August collection by the end of the week.

Outlook: There is a significant weather premium in current prices and in historic $ terms UK prices are high. There have been no new elements in the news this week, which will leave the market looking for the next thing.

Malting Barley

Markets have pushed higher this week on the back of gains made across all commodities. The drought in Russia being the main driver of feed markets. Consumers remain on the side lines with domestic values generated from the F.O.B market.

Overall winter barley samples seen remain good with yields a little below last year. There has been a split between Southern and Northern origination nitrogen levels which on an average basis has seen the South reflect levels of 1.4-1.6 compared with the North reflecting 1.5-1.8.

New crop values now offer an attractive proposition. Please contact your local Openfield farm buyer for price updates.

Matif malting barley futures have reacted to gains in other markets but a clear lack of liquidity has seen values dislocate from physical values; the nearby Nov10 contract gaining €13.50 on Thursday on the back of a single 50tonne lot trade. STG has remained in a relatively tight trading range this week with little impact on values.

Oilseed Rape

Values: Harvest £278 ex farm, November £288 ex farm
Domestic yield average improving
Drought persists in Russia and Ukraine

Harvest prices are in line with last week, trading in the £270 to £278 ex farm range with a £10 carry to November. The yield reports for this week have improved and become more consistent across the board nearing last year`s average with the latter crops likely to yield higher. The domestic market has been well supported by both the Crush and the Export market.

The nearby Matif is up on the week at the time of writing with the August contract up €4 although this has become technical as it comes off the board today. The reduction in Europe`s crop size, notably in Germany and France and the extreme drought in Russia and the Ukraine have been supportive to the market, along with the spill over from the strong rally in the Wheat market off the back of the aforementioned persistent drought in Russia.

Outlook: The market may become pressured by the crushers over the coming weeks with the current yield reports indicating no real change to the forecast domestic crop of circa. 2.1 million tonnes.

Oats

Prices have moved up on the back of the Wheat this week with quality so far looking better than expected with bushel weights and screenings looking satisfactory. Harvest prices in the region of £103- £106 ex farm depending on location with feed oats £5 below. Scottish oats are at a £5 - £10 premium over these prices for milling.

Pulses

Early samples of peas harvested are reporting 5 cwt per acre down in yield although quality is fine with reasonable colour. Samples are still being tested for soaking so cannot report on that. Prices on all pulses are up this week with feed beans trading between £144-146 ex farm for September.

Spring bean crops are under stress with small plants and variable sized seeds on rubbed out samples which would prove hard to get a premium, however Wizard samples look better and with better looking crops it is hoped for average yields.

Seed

Oilseed Rape production is well underway at Honey Pot Lane, a lot of farmers have yet to decide on variety but with drilling only a couple of weeks away please contact us with your requirements.

It is evident that earlier concerns over Cabernet appear unfounded as growers are reporting exceptional yields up and down the country, Sesame production will commence next week followed by Grandia.

Due to high TGW on Expower supplies will now be very limited so please contact us if you do have a requirement.

Seed barley production is well underway so please get your orders in early to ensure availability.

For all your seed enquiries please contact your Openfield FBM or the seed office on 01476 862694.

Fertiliser

A brisk Nitrogen market has continued this week, buoyed by a continued strong grain market. Even with the more buoyant grain market cash flow can still be a barrier to taking delivery of fertiliser at this time of year.

Finance to spread your fertiliser payments is available on GrowHow products through ING. Key features are that there is no arrangement fee; no transaction fee; the loan is unsecured; and the rate is competitive and fixed. ING offers an alternative line of credit, away from traditional sources. This then gives you the opportunity to secure your fertiliser at a competitive price without the cash flow concerns.

Please speak to your Farm Business Manager for more details on ING Finance

Disclaimer

While the information contained herein is believed to be reliable, Openfield makes no representation as to its accuracy or completeness. Any statement non-factual in nature constitutes current opinion, which are subject to change.