Global traders still thirsty for grain (From Gazette & Herald)

Global traders still thirsty for grain

4:25pm Thursday 2nd February 2012 in Farming comment By James Stephenson

I APOLOGISE for leading with a cereals report for the second week running but the volatility of the grain market at the moment does affect arable and livestock farmer alike.

Although there has been some rain in South America, it has not been enough to quench the thirst of global traders and, combined with rumours of potential export restrictions in Russia, the bulls have taken over from the bears; and in simple terms that means the price of wheat has risen again. As at the time of writing, a price of £157-£160/tonne is achievable on the spot market for wheat and barley is only a couple of pounds behind.

If you want to dip into the future then you can safely ask £160 for March, but it’s not easy to see why there should be any further large increase. The underlying fundamentals are not particularly encouraging with most traders holding adequate feed stocks.

Oil seed rape has broken the £360/tonne mark and that may go a little further if you feel like gambling.

Confused flood management

THE Public Accounts Committee has declared that “flood damage is a national priority”, but admits that it is unclear as to who is ultimately responsible for the risk of flooding.

Defra does not accept that it is in total charge but believes that the responsibility is shared with the Environment Agency as well as other local bodies such as, presumably, the local authority and the Drainage Board.

There is a wide gap between what the Environment Agency believes is needed to maintain even current levels of flood protection and the available budget.

Defra is looking to local councils and businesses to fill the void but that must be a pipe dream. I support a simplistic approach to flood management which history has taught us and that is, if you want to get rid of water on the land you need to drain it away.

Over the last 30 years, the Environment Agency and its predecessors have totally neglected any semblance of maintaining our rivers as major drainage channels and instead have allowed banks to collapse and debris to gather, all in pursuit of wildlife conservation. This has to stop, you only have to look at the River Derwent flowing through Ryedale to realise what a disgraceful state the rivers have got into.

Mixed bag of income forecast

Of passing interest are recently released figures from Defra forecasting mixed fortunes for farming incomes over the past 12 months.

With significant rises in both meat and milk prices, livestock producers generally are expected to see a 20 per cent to 30 per cent rise in their incomes.

Unfortunately this doesn’t extend to the more intensive production of pigs and poultry where a combination of pressure on prices and higher feed costs are causing a good deal of suffering.

I was on a large poultry unit last week where every egg laid was taking money with it and only an increase in price from the supermarkets can remedy the situation.

Cereal farmers are showing a marginal increase in income but all of us have been hit with rising inputs of which the most significant are a 20 per cent lift in fertiliser and fuel costs.

The figures give us some ground for optimism.

Virus taken seriously

I told you last week of the new midge born disease that has been identified on four sheep farms in East Anglia causing abortion and deformed lambs.

It is a pretty serious threat even more so as the lambing season progresses towards warmer weather when the midges become active again.

If you are at all bothered I understand that the state veterinary service will be providing testing facilities.

Livestock trade back on track

After the January blues, pay packets are now being received and the trade in the market which dipped after Christmas has recovered.

The averages at York and Malton were both about 193p for continental cattle making up to a top of 243p/kilo for George Marwood and 242p for John Marwood.

The sheep trade was equally buoyant with hoggs averaging 210p and making up to 225p per kilo.

When trade is moving forward the live auction is the place to be and your local market needs the support to keep providing a service.

Market report

Forward 77 cattle including six bulls and 21 cows, 1,019 sheep, including 238 ewes, medium steers to 240p, N Marwood, Harome, ave 197.7p; heavy steers to 218p,DJKHarrison, Rayslack, ave 189.4p; medium heifers to 192p,AW Hardwick and Sons, Snainton, ave 175.2p; heifer heifers to 243p G I Marwood, Harome, ave 203.9p; light bulls to 191p, J Wheldon, Farndale, medium bulls to 196p, JWheldon, Farndale, heavy bulls to 181p, JMarshall, Spaunton, OTMs to 175p,PR Boyes, Marishes, cows to 187p,RMason, Ling Hall, ave 134.5p; standard hoggets to 195p (£76) Thompsons of Helmsley Ltd, ave 190.5p; medium hoggets to 212p (£94) Burdass Lamb Limited, Harpham, ave 194.5p; heavy hoggets to 209p (£100) R Lamb and Son, Settrington, ave 185.2p; overweight hoggs to 185p (£102.50) J H Tennant, Fraisthorpe, ave 172.2p; Ewes to £128,DGreen, Pickering, ave £86.40; Rams to £110,CFBeal, Yedingham, ave £94.