I'm cheesed off with being called a Remoaner by "Glouters"
Grain markets are currently very interesting.
We seem to have two markets running – one on the east where there appears to be plenty of wheat and few buyers, and the west, where wheat is tight and with only a few sellers. Or could it be that here on the west the wheat is in the hands of stronger sellers?
The next few months will tell the tale as at some point the old and new prices will converge into one. For the first time in a couple of years that will mean a possible drop down to new crop levels.
That brings me on nicely as to what the prospects are for new crop wheat. Worldwide we are told that crops are bountiful and if all things remain equal we could be in for a bumper year. Combined with what the experts are saying about the pound firming up, it rather suggests that the grain prices will fall. If it were only that easy!
We are at the time of year when the weather plays a huge part in the markets and we have seen it happen before where a June/July drought can have a dramatic effect. Oilseed Rape never disappoints with its volatility and this year it has surpassed itself to a high of £320 off the combine which has now deteriorated to £295, on the back of a big soya crop and currency. So, the advice as always is to be prudent and sell a little and often – and beware of the grain merchant offering big prices.
On a lighter note, I was delighted to attend the Chamber of Agriculture lunch last month where to their credit they had The Secretary of State for the Environment speaking. Like all politicians, she spoke extremely well but I am not quite sure what she told us, but there is one thing for sure - we all need to make sure our businesses are very fit for life after 2020.
Having voted to remain I am a bit cheesed off with being called a “remoaner”, which I am not, so I have invented a new word, and that is “glouters” - but as an Aussie friend of mine once said “come on Bruce it’s time we worked together.”
David Roberts, of G.O Davies (Westbury) Ltd, a privately owned grain merchant operating across Wales and the West Midlands.
