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GROWERS SHOULD CONSIDER MORE SECOND WHEATS
Date added: 18/07/07 |
Growers who have focused on increasing the amount of oilseed rape in their rotations may have to think again as wheat prices continue to soar and oilseed prices plateau, suggests ProCam technical agronomist Nick Myers.
Arable farmers who have taken the strategic decision to tighten their rotations to grow more oilseed rape should take a look at global demand and stocks, he says.
“There’s been a lot of movement in crop prices recently reflected in the nearby wheat futures for 2007 & 2008 topping £100/t and rising whilst oilseed rape has stuck at around £160-170 for some months. Although a tightening world oilseed supply and next April’s introduction of the Road Transport Fuel Obligation may conspire to boost oilseed rape prices for the 07/08 marketing year”
Exceptionally low levels of global grain stocks – some 20% lower than just two years ago -combined with increasing demand for maize & wheat for bio-ethanol production are fuelling the price increases. In contrast EU stocks of oilseeds are predicted to rise in the next year, he points out.
“Our 4cast data show gross margins for wheat this could hit £750/ha this year for the top 25% growers – some £200/ha higher than 2005/2006. The best oilseed rape growers are predicted to achieve gross margins of £475/ha In contrast, the average margin for second wheats is expected to be over £500/ha with the best growers going over £650/ha.
“We need to think about widening rotations now and also look seriously at more second wheats and indeed other crops such as barley and pulses that in some areas would make better sense both financially and agronomically than oilseed rape.”
For example, winter and even spring barley may suit some farms and would give the added advantage of an earlier entry into oilseed rape the following year, Nick Myers says.
“It may seem like turning the clock back a bit but if you look at the way prices are moving and the factors behind this, it really is time for a rethink.”
PRM157 18th July 2007
For further information please contact Nick Myers, ProCam Ltd., Royston, Herts. Telephone: 01763 261592
Issued by Philip Hainey, Proterra Ltd., Stamford, Lincs. Telephone: 01780 756299
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