Grain prospects poor
Grain prospects poor
GRAIN producers holding out for better prices in the wake of the foot-and-mouth outbreak could be disappointed, claim traders.
Although many farms are unlikely to want lorries on their farms, these are usually stock units that tend to feed most of their grain. "With most grain lying on arable farms there is plenty of grain circulating in the system," says Glencores James Maw.
In the short term, with more animals on farms, demand for extra grain could create some spot opportunities, reckons Mr Maw. However, the longer term is not so positive.
"If there has to be a massive cull, demand for grain will fall. Added to this is the uncertainty on exports," says Mr Maw. "It is likely that Third Countries that will refuse grain without a health certificate."
Getting feed onto farm is already encountering logistical difficulties, with the restrictions preventing some lorries from going on the premises.
Although milk collection is still continuing as normal, albeit with extra precautions as advised by MAFF, developments over the next few weeks could push the market either way, says Express Dairies chief executive Neil Davidson.
"Export markets are already shut off to some UK products. If more export routes are closed we could be faced with an oversupply in the UK, which would push prices down. However, a huge epidemic could impact on milk supplies, having the reverse effect on values."