RUSSIA GRAIN MOVE SPOOKS MARKET - The biggest heatwave in a thousand years in Russia and Ukraine has pushed the price of barley up by over 130% in recent weeks. As a result of its drought, Russia now says it could extend a grain export ban into next year and may also cut its 2010 beet sugar output.
Professor Jimmy Burke of Teagasc, the agriculture and food development authority, said that - as well as the weather - there had been a decline in the areas being planted across the world, which was also affecting prices.
He said Russia exported 21 million tonnes of grain a year, and the withdrawal of this had spooked the markets.
Professor Burke said that if the drought continued in Russia, there could be shortages into next year and beyond.
He said this year's harvests in Ireland and Europe had been quite good, but Ireland was still a net importer of grain, and the market turbulence would have an effect. Professor Burke said grain prices had been quite low in 2009 and 2010, however, and a rise would help tillage farmers.
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NEWS IN BRIEF AND CURRENCIES - First-half losses for National Irish Bank point to persistently difficult market conditions here. NIB's operating profit dropped 32% to €26m. Its income fell by 17% to €84m and the bank set aside €367m for loan impairment charges.
Andrew Healy, NIB's chief executive, said the results reflected the continuing difficult economic and banking market conditions. He said the bank's focus was to complete its restructuring programme started last year. He also said NIB had no plans to increase mortgage rates at this time.
Its total loan book is €10 billion, down 5% on last year. Commercial property loans amount to €3.3 billion, with most of the bank's loan impairment charges in this area. The mortgage book amounted to €3.6 billion.
On the currency markets this morning, the euro is trading at $1.3161 and 83.14p sterling.
