The grain harvest in Europe is starting to pick up speed. The combines have also gone onto the land in the Netherlands, although the conditions are certainly not ideal. The wet weather conditions, in combination with an already reduced acreage, also influence the availability of straw and its prices.
Due to the wet growing season, the Dutch grain harvest is disappointing. Apart from the area shrinkage, yields per hectare this year are two to three tons lower than usual, insiders say On. Things aren't much better in France. The French agriculture ministry further reduced winter barley harvest forecasts earlier this month to a drop of as much as 11% compared to last year. Yield forecasts in Germany are also affected by heavy rainfall and below-average yields are assumed.
Straw is scarce
These developments will also have consequences for the straw supply, roughage traders assure. Not least because growers are more likely to chop the straw and work underground due to the wet conditions. This is to accommodate any damaged soil structure and to drive as few tracks as possible with heavy equipment. In addition, the old straw stocks were already tight, meaning there are hardly any buffers in the market. Livestock farmers are becoming increasingly aware of the situation and want to secure their winter supplies now. In short: enough demand, but little supply.
A trader from the Northern Netherlands indicates that he has therefore been forced to shift his purchasing area to East Germany in the former GDR states. Supply from France and Denmark is very difficult to obtain, partly because, according to him, arable farmers are inclined to hold on to product with a view to higher prices in the coming autumn and winter months.
Price drop stopped
At the beginning of the landing period, the DCA indicative prices for straw relaxed somewhat, but this has come to an end this week. Wheat straw new harvest stabilizes at €150 per tonne (delivered free, in full combinations), while barley straw increases by €10 to €135 per tonne. This means that prices are considerably higher than in previous years. The market may relax somewhat in the coming weeks if it turns out that the progress of the harvest is going well. After this week the weather seems to be improving somewhat. There are also concerns about the quality of straw, but a final assessment of this can only be made after the harvest.
Meadow hay and silage maize
Meadow hay and silage maize are also on the expensive side at €190 and €95 per tonne respectively. In the past week it was sometimes possible to mow again, but farmers were not given much drying time. It seems like it will be drier after this weekend. However, then the KNMI predictions must at least come true.
Click here for an overview of roughage prices in our database.