News Cereals
CZAV advance price grains highest in 9 years
The southern cooperative CZAV pays the highest advance prices in 9 years for wheat and barley. A price of €172 for baking and milling wheat is in stark contrast to last season. Advances for feed wheat and barley are also significantly higher.
In August 2012, CZAV paid out a record high advance price. This year it is a lot lower, but still better than in subsequent years. For baking, milling and summer wheat, the price is €172 per tonne. For feed wheat that is €165 and for barley €160. Because 90% of all wheat received at CZAV can be sold as baking or milling wheat, most growers can take advantage of the higher price.
Most chosen
The advances are €27 and €25 per tonne higher than a year earlier† €25 more will also be paid out for barley this summer. The reason for the current price level is the current daily market for grains and the short-term outlook. Affiliated growers can trade their grain in various ways. The pool with an advance system is the most used. A supplementary payment will follow next summer, depending on how the market has performed.
Growers can still choose whether they want to receive the advance, sell at the current price or sell at a later date. More growers have sold part of their harvest on contract this season, because the market increased from spring, the organization said in a statement. At the moment, the regional exchanges quote a feed wheat price between €220 and €229 per tonne. The Matif futures market for baking wheat rose again on Thursday 19 August to above €260 per tonne.
Positive about grain market
CZAV is positive about the grain market, but at the same time it is skeptical. Due to the low grain stocks and disappointing yields in Europe – also with a lower quality – it does think that the market is positive in terms of price.
The cooperative has now received 85% of all grain. Rain is now delaying the harvest. Due to the dark and wet weather in June and July, the yields are significantly lower, while the crop status and development have been good. The disease pressure also remained under control. The hectolitre weights are heterogeneous and not all parties meet the minimum requirements. Feed wheat and feed barley deviate more strongly than the milling and baking wheat. That is why a discount is applied this year for a hectolitre weight that is too low.
Niels van der Boom
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