The market continues to tread water however, there are some indications that demand is beginning to pick up and supply is tightening. Ambient store product will finish in the coming weeks which will then limit supply to only cold store material.
The story is similar across in the UK where although demand remains a little lacklustre price have held firm this week. Exports from the UK to Europe have increased which has been taken as a positive indicator by the market. Meanwhile, physical prices in Northern Europe remain strong with some of the weekly indices even showing increases of €6.00/8.00 per tonne. As farmers plan for the planting season they need to review the market outlook. It is likely that planted area across Europe will be similar if not see an increase on 2018 figures which with only average yields would result in a potential over supply situation. Notwithstanding the fact that auctioneers are now doing their usual thing of trying to drive land rental prices higher, producers need to ensure they don’t jeopardise the viability of their crop by paying over the odds for land.