The floods which have destroyed corn crops in the United States will bring improved prices for cropping farmers here.
Federated Farmers Grain & Seed chairman Andrew Gillanders said grain growers were being advised to closely follow world markets before committing to sales, otherwise they could miss out on improved prices.
“The New Zealand grain growers should not be tempted into signing contracts because their input costs are rocketing up and the New Zealand dollar is dipping everything is about to rise again.”
The price of corn reached nearly $8 a bushel in the United States this week because of a wet spring and floods in the Midwest which are forcing farmers to replant their crops or replace them with soya beans.
This will have a flow on effect on the price of beef because so much US stock is grain fed.
New Zealand farmers are facing cost increases of around 50% for chemicals, fuel, fertiliser and transport so the prospect of improved returns is welcome. But of course higher prices for grain will flow on to the domestic market making bread and cereals more expensive.