HGCA switch for grain reporting

THE HOME-GROWN Cereals Authority is changing the way it reports grain market prices in an attempt to increase transparency and help farmers to understand how the market works.

From July, the HGCA will cease reporting daily ex-farm prices, switching instead to more comprehensive delivered values across the country.

“This is quite a shift,” said economist Rupert Somerscales.

“Cereal marketing strategies have evolved considerably in the past few years and price reporting by HGCA has now been upgraded to reflect this.”

The new format will include delivered prices for a range of wheat and barley qualities for both spot and forward sales.

By subtracting haulage and a merchant‘s margin farmers can calculate a specific price that is unique to their farm.

The HGCA also hopes that it will encourage farmers to think more about how ex-farm prices are reached, aiding their grain marketing efforts.

“By understanding the relationship between ex-farm, delivered and futures prices, producers will be better equipped to profit from any anomalies that occur in their local markets,” said Mr Somerscales.