Spring Barley Contracts Still Available for Harvest 2014

We have seen little change to ex-farm values over the last seven days and end-user demand has become increasingly thin. The majority of our local end-users are now fairly well covered until the end of the year and interest in January movement is thin.

Again, the price shift that the market so desperately needs in order to kick start buyer interest once again has still not materialised this week – perhaps this month’s edition of the World Agricultural Supply and Demand Estimates (WASDE) from the US Department of Agriculture (USDA), due today, will bring some much needed fresh news to the market place?

For those of you looking to secure January collection, £165/T ex-farm would be a more than realistic value at this stage. Movement further forward is currently offering a £1/T per month carry – spring collection is therefore trading somewhere in the region of £170/T ex-farm depending on how flexible you were with movement.

Feed barley remains static at £140/T ex-farm for February with good buyer interest. Again movement further forward is offering a £1/T per month carry.

Meanwhile OSR values are slightly lower this week with some last minute pre-Christmas collection to the crush trading in the region of £290/T ex-farm. Movement into the New Year would probably offer £3-4/T more.

Looking ahead, new crop feed wheat is continuing to trade in the region of £150/T ex-farm for as available collection despite further confirmation of excellent crop establishment throughout wider Europe, America and the Black Sea region.

Soft wheat plants across southern Europe are said to be in a good condition after a prolonged period of favourable autumn weather and a mild transition into winter. Plants are also said to be in a similar condition across Southern Russia and western areas of the Ukraine, both of which are key wheat growing areas.

Elsewhere, spring malting barley contracts for Harvest 2014 are currently offering a £40-45/T premium to feed barley for as available collection.

Judging by the amount of good quality old crop spring barley currently available on farm, I imagine our domestic maltsters will keep themselves fairly well stocked prior to this year’s harvest. Current values are struggling to make a £10/T premium to feed barley; it make’s sense for them to stockpile barley around the £150/T and therefore limit their more expensive harvest intake.

Consequently, spring barley that is grown without a contract could struggle to secure immediate movement – please contact the office for more information.