USA: Some of the maltsters may still be offering contracts for malting barley - expert

For growers still wanting to seed barley this year, there is a chance that some of the maltsters may be offering a small number of contracts yet for the 2015 growing season, according to Randy Brag, of Valley Grain Milling in Casselton and Beulah, both in North Dakota.

“I heard last week there were some e-bids out there for Busch again, so it’s one of these things that if you are looking for contracts, it’s best to call the maltster and let them know you are interested so they can contact you,” Brag was quoted as saying by Farm & Ranch Guide on March 19.

Brag noted there are many growers who haven’t grown barley for several years who are taking a good look at it right now as they are trying to make the different crops pencil out.

“I’m expecting quite an increase in barley acres here,” he said. “You talk to the guys who are selling seed and there is a big demand for barley seed. I think many are going to seed barley, even if they don’t have a contract.

“And that might not be the worst idea in the world if they go with a good malting variety,” he continued. “We are so short on good malting barley in North America because of last year’s crop. If something happens to the crop this year there could be some demand for open market barley. But, if we have a good crop all the way through, we will be in trouble as far as open market prices.”

Brag said the market is in what they call a weather market right now, even though few acres have been planted nationwide. He has heard that some barley has been planted in southern Idaho and Colorado and maybe some acres in Montana. This is an early start for them and growers in North Dakota and northwestern Minnesota could also see an early start this year.

“Right now we are dry and it looks like an early season – we could get a whole lot of aces planted this year and prevent plant might not be a problem this year,” he said. “And if the weather holds, I could see a lot of guys planting around the first of April.”

Having a better handle on the malt-quality supply of barley from last year’s crop has also led to a slight increase in cash malting barley prices.

“I’m sure they are looking for a little barley on the open market, since every day is a surprise as far as what doesn’t germinate,” Brag said. “We are getting to the point where the maltsters are getting a little tougher and rejecting the sprouted barley and they are now dipping into the farmers who had the better quality stuff.”

As far as export markets for U.S. barley, the strong dollar is swinging whatever export business already existed to other countries.

“The Canadians seem to be exporting more barley than the guys in the U.S.,” he said. “And it is also a matter of supply, since acres have gone down and down in the U.S., we just don’t have the supply of feed barley like we did years back.”

Cash elevator board prices for malting barley advanced a quarter to an average of $5 a bushel across the state. Feed barley cash prices remained steady at around $2.25 a bushel.

19 March, 2015