Grain pools prove to be a valuable marketing tool

Protect yourself from fluctuating grain market prices by using marketing schemes like grain pools, warns Gleadell Agriculture.

"In a volatile season the grain pools provided a safe base for all farmers," says trading director David Sheppard. "I would advise any arable business that a well-run grain pool should be an integral part of their marketing programme."

The warning comes as Gleadell announces top-grade milling wheat pools performances. The harvest pool paid a £13.80 premium for Group 1 wheat, with the Oct-Dec pool not far behind with a £12.77 premium. Over 50% of all feed type wheat in Gleadell's pool achieved a quality premium of some sort this season.

Gleadell Agriculture's grain pool size is up to 250,000 tonnes per annum, split into the four pool periods. The Gleadell pool opens in the December before harvest, and closes by the end of March. Payment is the 28th of the month after each pool period.

Mr Sheppard recommends checking the track record of the pool before joining. "Never look at one pool period in isolation. Compare like with like and check the variables, for example that prices shown are net of all costs and are of comparable quality and location.

"Although the top of the market price isn't guaranteed a good pool protects farmers from selling at the bottom of the market. A lot of grain actually traded between £60-70/tonne ex-farm this season despite the higher market prices towards the end of 2004. Compare those prices with the pool price, not the top of the market," says Mr Sheppard.