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Act now and maximise the value of stored crops

Thursday 14th May 2015

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Act now and maximise the value of stored crops. Polycool offers a cost effective solution to creating temporary storage space for the coming season’s harvest.

If you are at Cereals 2015 drop by the Agricultural Supply Services stand no.1031 and see the benefits first hand.

Current market conditions, where the 2015 feed wheat crop is worth more than the 2014 crop, are creating an economic incentive for farmers and commercial store keepers to keep feed wheat in store and sell into the next marketing season.

The large wheat crop of 2014, in combination with additional market factors, has led to the current price differential.

Jack Watts, AHDB Lead Analyst, said: “The November 2015 feed wheat futures have recently reached a £10/t premium over the May 2015 spot price. Usually, the new crop price is at a discount to the spot price.”

Whether individual businesses decide to hold onto the 2014 crop largely depends on two critical factors:

1. Cash flow – Stored grain ties up working capital that a business may need to release in order to fund the growing of the 2015 crop.

2. Storage constraints – Stored grain requires continued management and can cause logistical issues at harvest to en-sure old and new crops are segregated.

Mr Watts continued, “Those with grain to sell are advised to devise a plan which includes both storage and cash flow management to put them in a strong position to get the most out of this current market opportunity.”

Taken from the A&I (Agricultural and Industry news)

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