United Kingdom: Malting barley prices evolution the exact opposite of what happened last year

UK’s malting barley prices halved and then doubled as prices have been on a roller-coaster in the past two years, EDP 24 reported on October, 16.

However, the average price in each of the last two years was just £2 a tonne different, Bob King, commercial director of Crisp Malting Group, is quoted as saying.

The company also expects to be buying a record tonnage of Norfolk barley from next year’s harvest, Mr. King said.

“For the 2011 crop if we can sell the malt we hope that we’ll sell, then our purchases for Great Ryburgh and Ditchingham will be our biggest ever purchases of barley,” he said.

“Last year we started with very high prices as winter barley was £180 tonne on the back of the previous year. The market went all the way down to trading at £90 tonne by June last year. This year, we’ve got the reverse.

“There was a lot of barley sold ahead (of the 2010 harvest) at £90 to £100 tonne; there will be barley sold at the end of the year which might make £180 tonne.”

“By the time we’ve finished this year’s purchases, our average price of barley for the 2009 crop and average for the 2010 crop will be within £2 of each other or about £150 tonne.”

“I was really surprised by the span in both years – we’ve seen barley double in price and halve in price.

“We’ve seen wheat rise from 105 to £170 and then fall back a bit and malting barley from £95 to £175. It is the exact opposite of what happened last year. We’ve had a six per cent devaluation which has helped prices too.”

Mr. King believes prices may rise to £185 or £190 if Saudi Arabia starts buying and intervention stocks are not released quickly enough.

He said that brewing demand was down and had not recovered from last year.

“For our business, we supply to Scotland from East Anglia as well, there’re hope for us. We as business are probably going to run about 95pc capacity while the industry as a whole might run at 85pc.”

20 October, 2010