In difficult market conditions, Agrifirm Plant managed to keep up with the grain pools in the past sales year. But amid major global harvests, prices remained low.
The price of grains has been under pressure in recent months due to the large global supply. Agrifirm reports this in its final statement for the 2016 harvest pools. The cooperative can only conclude that all in all it has not been an exciting grain year.
Wheat market without major fluctuations
The grain market has continued to function under the pressure of a large available harvest volume this season. It is true that the yields were in Western Europe at a low level, but good yields were achieved in the Black Sea region and also in North America. At the beginning of 2017, it turned out that Australia was also achieving high yields.
There were no major price fluctuations this season. The fact that we have had lower yields than average in Western Europe has ensured that the price did not completely drop after the harvest and still showed a slight increase.
The pool price for baking wheat with advance payment ultimately amounts to 160,10 euros, without advance payment 163,25 euros. The storage pool is closed at an average price of 174 euros per tonne. Feed wheat with advance payment amounts to 155,10 euros, without advance payment 158,25 euros and in the storage pool a price of 169 euros applies.
Demand for barley is low
The barley market practically always follows the movements of the wheat market. What is striking is the difference in sales price between wheat and feed barley: it was remarkably large this year to almost 25 euros per tonne.
Another difference, unlike wheat, is that the demand for barley was very limited. China has always been a major importer of barley, but hardly any barley went there this year. Supplies therefore piled up and depressed prices. In addition, the poor quality barley that was often sold from France and Belgium did not help price formation in the Netherlands.
This resulted in a price in the basic pool of 138 euros for feed barley with advance payment. Without an advance payment, a pool price of 141 euros applies, the storage pool amounts to 142,50 euros.
Premium for malting barley
Agrifirm managed to realize a premium for malting barley, which puts the pool price for premium malting barley at 160 euros with advance payment. Without an advance payment, a price of 163 euros was determined. The same amounts apply to whiskey barley. Standard malting barley yields 158 euros with advance payment and 161 euros without advance payment. Winter brewing barley averaged 148 euros with advance payment and 151 euros without.
Member benefits and premiums
In addition to the prices mentioned, members receive a member benefit of 1,50 euros per tonne. Participants in the basic pool, without advances, receive 3 percent interest on unpaid advances. This means a premium of 3,15 euros per tonne of wheat or 3 euros per tonne of barley. For 2017, the interest rate has been reset to 3 percent.