E-Malt.com News article: 1419

INCREASING concern about Canadian crops means that world output of malting barley does not look as assured as it did a few weeks ago, says the Home-Grown Cereals Authority, according to The Scotsman report from August 9.

One result has been that Canadian and Australian malting barley prices have fallen to a $20 per tonne discount against European Union prices, as harvest continues rapidly in the present hot weather. This, says the H-GCA, compares to price parity last December.

At that time malting barley export prices, for the 2003 crop, were quoted at about £93 per tonne fob, £81-£85 ex-farm, based on the variety Optic at 1.85 per cent nitrogen. Prices have since fallen by £3 to about £78-£82 per tonne ex-farm, while feed barley export prices have climbed £12 per tonne to about £72. The H-GCA estimates that, as a result, this year’s spring malting barley premiums are down to about £15 per tonne.

In Scotland, almost all winter barley has been cut much earlier than usual, as has oilseed rape, with combines now into spring barley, the main cereal crop. Simon Barry of Highland Grain, the farmer-owned co-op based north of Inverness, said yesterday: "Harvest is going well with more than 10 per cent of spring barley in our area already combined. Yields are about average, but later crops are likely to do better.

"Quality has been excellent, though some screenings have been up to 10 per cent. Nitrogen levels are low, averaging about 1.35 per cent. It’s too early to talk about malting prices, but I expect the premium to be a minimum of £15."

Harvest in the Lothians, Borders and Fife is a shade ahead of the north, said David Munro, a grain trader with WN Lindsay: "Combines have been moving at a fair rate of knots this week. Quality is good and screenings in our area are low with nitrogens around 1.5 -1.6 per cent, but I don’t think we are going to see any record yields. Moisture levels for those who are patient are 15-16 per cent, some lower."

But little barley has moved off farm yet, with the usual transport bottleneck looming because of the area modern combines can cut in a day.

Feed barley is trading at about £66-£68, feed wheat quoted mid-£80s, although little has been cut yet.



13 August, 2003