There is clearly much more interest in spring wheat among arable farmers. The current stocks at Agrifirm have been sold and things are also going well at fellow cooperative CZAV. The high wheat prices and prospects for the coming harvest are causing a small change in the construction plan.
Industry insiders dare not name one crop that is being grown less this season. It is probably a sum of all kinds of crops. Onions in the southwest or perhaps also potatoes and carrots. "We also hear that growers are entering into fewer contract crops, such as canned goods." This is what Jurriaan Visser, grains manager at CZAV, says. "The contracts were drawn up weeks or months ago with the then prevailing wheat prices in mind. Today that contract price is no longer competitive."
Out of stock
Agrifirm Plant informs its customers in a news message: "For summer grains, so much extra sowing is being done than expected that available stocks have been sold and we now have to wait for new stocks." They are still there, as Agrifirm sales manager Aart den Bakker also indicates. The company sources seed from Europe to meet demand. "Delivery times are increasing due to the spring peak and enormous peak in orders. Summer grain can still be delivered quickly."
CZAV still has sufficient spring wheat and barley in stock, but Visser also indicates that the company is doing well. "It has really gotten going since the end of last week. This is purely due to the price level on the (future) market. It is a difficult market to estimate. When winter wheat is successful, the demand for spring wheat is normally low. This year it's different."
Barley follows wheat
There is also more demand for summer malting barley, but it lags behind the wheat market. The stock exchange quotation for Northern Netherlands stood at €290,50 for barley last week. A plus of €27,50 in one week. In Goes the price difference is even €33,50 and the quotation is €280,50. The Rotterdam feed barley quotation (wholesale price) is now €336 per tonne.
Arable farmers also register with the cooperatives to sell both old and new harvest. Those who do not participate in a pool sometimes still have wheat to trade. Some have already done that during the previous revival, but not everyone. With a price level above €400 on the European Matif futures market, prices in the physical market are also historically high. However, due to the volatility, the physical market has almost come to a standstill, Visser indicates. "The spread between the highest and lowest price in one day on the Matif was €56 per tonne last week. In such a volatile market it is very difficult to determine a realistic market price. For growers who want to sell, we offer a daily price to provide direction. At Agrifirm, we look at the situation at that time. This can vary hourly."
New harvest at €300
The September contract on the Matif is now above €330 per tonne for the new harvest. For forward sales, the companies apply a discount on the futures market price. It has not been firmly confirmed, but the new harvest can now also be sold for €300, or around that price. No one knows whether that is a 'good' price in the current market situation. In addition, there are also growers who trade on the futures market to hedge their new harvest.