September 28, 2007

Feed grain prices to fall sharply next year: IFA says

With farmers in all major wheat producing countries planting more wheat following this year¡¯s meteoric rise in global grain prices, feed grain prices are likely to fall from their current highs next year, the Irish Farmer Association said.

Industry analysts predicted this week that wheat prices will fall 30 percent within a year. However, for now, the news remains bleak, with short term wheat future prices rising again this week, due to strong global demand and a warning that drought will reduce Australia¡¯s wheat harvest by more than one third.

IFA said that although grain growers are benefiting from higher prices, food processors and livestock farmers face a difficulties posed by higher raw materials.