August 10, 2011

Lithuania grain prices rely on weather

Lithuanian farmers are delaying their harvest hoping that unfavourable weather will cause grain prices to surge again, according to the daily Lietuvos Rytas on Tuesday (Aug 9).

About one-fourth of the country's grain crop has been harvested, but grain purchasers' elevators are still half-empty.

If the rainy weather continues, the price for high-quality grain may rise further.

"Farmers agree that the grain purchase price is good this year, but they are watching what is happening in the fields and are not rushing to sell what they have harvested," Raimundas Surdokas, the plant-growing business head at Kauno Grudai (Kaunas Grain), said.

The company has to date purchased about 40,000 tonnes of grain, slightly more than 10% of what it plans to buy this year.

Buyers currently pay LTL580-700 (US$241-291) per tonne of high-quality grain and LTL650 (US$270) per tonne of feed rye. The prices are about 10% lower than August 2010.