26 Jan 2009

Signs that grain prices have stabilised - Federated Farmers

7:25 am on 26 January 2009

There are signs that grain prices may have stabilised.

And a crop farming leader is optimistic that prices will improve over the next few months as feed supplies tighten.

Federated Farmers' Grain and Seed chair Ian Morten says new figures indicate international commodity prices for feed wheat and barley, maize and straw have stabilised with no fall since November last year.

He says the price for feed wheat has dropped by about $100.00 to $380 a tonne since its peak last year, while farmers are getting about $340 a tonne for barley.

Ian Morten says international prices are unlikely to fall any further and indications are they will lift in coming months, as a result of less product being carried over from the previous season.

He says there has been some impact with a cold winter in the UK and lower plantings there.

Mr Morten says the predictions are that grain supply will get tighter and therefore prices should rise.

He says that's having very little effect locally at the moment.

But Mr Morten says grain prices should start to firm during the second quarter of this year.