Monday 22 October 2012
The grain trade
The two major co-ops last week announced their harvest prices for grain that was not subject to forward contracts.
The prices from both are broadly similar for feed wheat and barley. However, Dairygold's prices are subject to a loyalty bonus top-up of up to €5/tonne.
The individual crop prices are shown in the table and are exclusive of VAT. So, for those not registered for VAT, all these prices are subject to a further 5.2% top-up, or roughly another €10/t.
All Dairygold grain prices are subject to a loyalty bonus of up to €5/t on grains that were not forward sold.
A co-op spokesman said that over 80% of the grain delivered qualified for the full €5/t top-up with the remaining 20% receiving a lesser amount.
The loyalty bonus does not apply to beans or oilseed rape. The bonus is paid on a proportional basis to the level of seed and agrochemicals purchased from the co-op during the season.
However, both co-ops operate different quality specs and adjustments.
Glanbia lowered its feed grain intake spec to 70KPH for wheat and 60KPH for barley and its deduction is €1.27/KPH point for grain delivered below these levels.
Dairygold retained its high quality spec of 73KPH for wheat and 64KPH for barley but its price deduction is only €0.63/KPH point.
Both price agreements were announced last week. However, neither co-op announced a price for contract malting barley, as the full value of the premium is still being discussed.
It is hoped that this price will be available shortly.
Source: Argentine Beef Packers S.A.
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