Feed grain stability likely in good season

Despite decreasing stocks of unsold feed grains and high payouts forecast for the dairy sector, feed grain prices should remain relatively stable, Foundation for Arable Research chief executive Nick Pyke says.

High yields in the past two growing seasons and a ''very favourable'' start to this season should keep prices in check, Mr Pyke said.

In the most recent Arable Industry Marketing Initiative survey - which counted sold and unsold feed grains on-farm on October 1 this year - there were ''medium volumes'' of feed wheat and barley still unsold from last season, while it was estimated there was no maize grain still unsold.

The survey estimated there were 52,700 tonnes of unsold feed wheat, compared with 75,100 tonnes on October 15, 2012, and 7,800 tonnes on October 1, 2011, and 31,900 tonnes of unsold feed barley, compared with 66,300 tonnes on October 15, 2012 and 23,800 tonnes on October 1, 2011.

Mr Pyke said while unsold stocks were down on last year, it reflected how good the yields had been in the previous season and not a shortage in the market.

''The areas planted [this season] are fairly similar ... and the season has been very favourable,'' he said.

''At the moment I would say it's heading towards being an average to above-average season,'' Mr Pyke said.

He expected another year of high yields to offset demand from the dairy sector.

Eastern Southland arable farmer John Gardyne said similar areas of grain had been planted compared with the most recent season.

''It's a long way out yet [until harvest] and to try and predict [yields] is pretty hard,'' Mr Gardyne said.

''You can predict based on area planted and in this area it's very similar amounts gone in. People aren't going overboard.''

The weather had been favourable and ''everything is growing'' following a wet October in the region, he said.

''We just need another shower of rain through and then some more sunshine,'' he said.

''It looks good, but it's too early to say.''

 

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