By FWi Staff
FARMERS are waiting in anticipation of a possible Green Pound devaluation that would increase the barley intervention price by 80p/tonne from November. But a rise in the German currency today has put the devaluation in doubt.
A 10-day working period was established on Friday (11 September) when the Pound slumped to DM2.8408. “It would be necessary for the Pound to remain at this average level over the 10 days and, as the currency has increased to over DM2.85 DM today, this looks less likely,” said economist Mark Buckingham of Banks Agriculture. As this story was posted, the latest rate for the Mark was £1=DM2.856.
The launch of the Euro in January, bringing the aboliton of the Green monetary system, will change the intervention pricing method for UK farmers. And, if the Pound remains relatively constant until that time, a further £1/t could be added to the value of intervention barley, explained Mr Buckingham.
So is not surprising that the barley market remains quiet at present – farmers are reluctant to sell grain in the hope of price rises with intervention. Feed barley is currently about £67/t.