The advance price of the CZAV grain pool is €145 per tonne. This price applies to baking wheat, milling and spring wheat, which corresponds to approximately 90% of the total grain intake at the Southern Netherlands cooperative.
For feed wheat the advance is €140 per tonne and for barley €135 per tonne. CZAV now announces the advance price because growers can choose whether to sell the grain at the current daily prices, or at a later time via the usual grain pool. The choice must be made no later than Monday 10 August.
Long term grain price
CZAV indicates that although the advance is partly based on the current day market and the short-term outlook, they offer no guarantees. In the short term, analysts are anticipating a falling grain price due to a likely abundant harvest outside Europe and the corona uncertainty. This argues in favor of trading on a daily basis. On the other hand, the grain harvest in Europe this year is disappointing and the European grain stock is declining, which is not desirable in times of crisis. In this case, the pool price is likely to be more favorable in the longer run.
90% grain harvest indoors
Until now, CZAV has received 90% of the grain harvest in its working area in the southwest of the Netherlands. The harvest went smoothly and CZAV is particularly pleased with the quality, often baking quality. The yields are very diverse, but with a high hectolitre weight. Spring wheat sown late often exhibits bipolarity, due to the extremely dry conditions during and after late sowing.
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