United States: Malting firms still waiting to release malting barley contracts for next year
Although Busch Ag is still in the electronic bidding process for 2015 malting barley contracts, the other malting firms are still waiting to release malting barley contracts for next year's production, Farm & Ranch Guide reported on November 10.
The only exception to that is a small amount of acres were contracted by Miller/Coors in North Dakota, according to Kayla Burkhart, grain merchandiser for CHS Sun Prairie Grain in Minot, N.D. This action fulfils a decision that Miller/Coors made a couple months ago to spread out their contracted acreage to other barley producing areas.
It has been reported, Burkhart noted, that the prices for the electronic bidding have generally been in the $4.75 to $5 a bushel range.
"I don't think a lot of growers will want to take out a contract for less than $5 a bushel, but Rahr hasn't come out with their program yet," Burkhart said. "Each week we hear it should be coming out this week, but as of now, that hasn't happened."
The cash prices for both feed and malting barley are holding steady, according to Burkhart. In the case of malting barley, the maltsters are still evaluating their supply of barley, and focusing on malting some of the barley that had slight sprout damage.
And without, any export demand and low corn prices, she doesn't expect to see any upward movement of cash feed barley prices anytime soon.
The outlook for cash malting barley is a little more positive. As we get closer to next spring and summer, the maltsters may have to start shopping around for malting barley, and for that reason, Burkhart thinks there may be a surge in cash malting barley prices.
The latest World Agricultural Supply and Demand Estimates (WASDE) report from USDA shows the expected barley crop in the U.S. during the current marketing year pegged at 180 million bushels, compared to last year's figure of 217 million bushels. This will bring ending stocks at the end of this year to 68 million bushels, or 14 million fewer bushels than last year's ending stock numbers.
Harvested acres this year fell to an estimated 2.5 million acres, down a half million acres from what was harvested last year.
The latest WASDE price projection for all barley falls in the $4.70 to $5.50 range. This compares to a final average price last year of $6.06 a bushel and $6.43 from two years ago.
The latest National Ag Statistics Service report on North Dakota agricultural prices indicated the preliminary October feed barley price was $2.30 per bushel, down 32 cents from last month, while the malting barley preliminary October price was $5.32 per bushel, down 46 cents from the September price.
Current elevator cash prices for feed barley was $2.05 per bushel, unchanged from two weeks ago and the cash prices for malting barley was also unchanged at $4.25 a bushel.
12 November, 2014
