Prices & Trends

It is not just shoppers who are stockpiling in the face of coronavirus, with countries holding back grain to keep for their own food supplies, helping push up UK grain prices.

Fuel prices were softening at a key time when farmers were playing catch-up after the wet winter but they have not yet tumbled in line with oil prices.

A massive over-supply of milk in the UK and across the world is the reason for the dramatic fall in milk prices. UK spot markets have dropped to 15ppl, while some milk is going unsold and starting to be dumped.

In theory, it should be fairly easy to farm while staying two metres away from every other human being. Open fields and solitary tractor cabs mean arable farming is fairly self-isolating at the best of times. There are clearly fewer face-to-face meetings than, say, being Prime Minister.

US corn area is up for debate as prices have moved lower since recent planting and stock data was taken, meaning farmers planting decisions could easily change.

Labour availability, supply chain disruption and volatile prices are the issues uniting farmers around the world as the global industry reacts to coronavirus.

Panic buying of products such as bread and potatoes due to coronavirus fears is supporting prices in these sectors.

With 40 per cent of food eaten out of the home in the UK, the Government’s decision to close pubs and restaurants will have a major impact on demand.

Concerns have been raised that cattle prices could drop over the coming weeks, with demand for steaks from both the food service sector and retailers plummeting due to the coronavirus epidemic.

The widening gap between the highest and lowest milk prices was brought into sharp focus when Arla announced it was increasing its manufacturing milk price by nearly 1ppl at a time when Meadow Foods said it would drop its by 2ppl.