Poor prospects for grain

By FWi staff

GRAIN producers holding out for better prices in the wake of the foot-and-mouth outbreak could be disappointed, claim traders.

“With most grain lying on arable farms, there is plenty 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 will refuse grain without a health certificate.”

Getting feed on to farm is already encountering logistical difficulties, with the restrictions preventing some lorries from going onto premises.

Although milk collection is still continuing as normal, albeit with extra precautions as advised by MAFF, uncertainties remain, says Express Dairies chief executive Neil Davidson.

“Export markets are already shut off to some UK products. If more export routes are closed that could push prices down. However, a huge epidemic could have the reverse effect on values.”