CZAV just announced (Friday 11 June) the final prices of the grain pool. The cooperative looks back on a turbulent year on the grain market. How is the CZAV grain pool performing in this volatile market?
The CZAV pool price for the 2020 harvest is the highest since 2012. The quality of the wheat supplied was very good according to the CZAV and last year we managed to sell by far the largest part of the grains in the food sector.
Baking wheat (with a HL weight above 76 kilos and protein percentage from 12,5%) has yielded €193 per tonne in the pool. €191 per tonne is paid for milling and spring wheat. Feed wheat has yielded €187 per tonne in the pool. For brewing and feed barley, growers are paid €190 and €175 respectively.
Turbulent market
According to the CZAV, growers hesitated around the harvest to pay for the wheat immediately. The corona crisis caused a lot of uncertainty. However, the virus has not taken hold on the grain market. Due to, among other things, high demand for grain from China, Russian export duties and poor harvest expectations in Brazil, the grain markets flared up in early 2021, according to the cooperative. Tight corn and soy supplies have dragged down wheat prices. Investor activity increased on the futures markets, causing additional volatility in the market. Price differences of €10 in 1 day were not unusual.