Scotland, UK: Most of the winter barley crop has been harvested and reports are generally of slightly higher than average yields with good quality. The big problem is price, with the Home Grown Cereals Authority quoting a delivered spot price of Ј63 per tonne. Deduct haulage charges and that leaves the ex-farm price at little better than Ј54-Ј55 per tonne. In the first week of August last year, the HGCA delivered quote for feed barley was Ј67 per tonne, The Scotsman posted on August 10.
Intervention for wheat and barley opens in November. For wheat the price will be 101.77 (Ј68) per tonne. Selling barley into intervention is more complex in that the grain must meet strict standards, including a maximum of 14.5 per cent moisture, a minimum specific weight of 62 kilos per hectolitre and a maximum of 12 per cent impurities.
It will be some time yet before the first of the Scottish malting barley is harvested, but there are concerns over price levels. The trade is unwilling to speculate on spot price levels, pointing out that most malting barley is traded on a contract basis.
The problem is that most contracts are based on a premium over feed. A premium of Ј10 per tonne is anticipated for winter malting barley, relatively little of which is grown in Scotland. For spring malting varieties, the HGCA is suggesting a premium of Ј13 per tonne.
But with feed values being almost Ј10 per tonne down on last year, there is little prospect of the malting trade being much better than Ј75 per tonne, unless business has been secured on a fixed-price contract.
11 August, 2004
