Malt Barley

[jd3007]

I have barley that wasnt accepted for Malt in 2009 and am considering buying out a $2.25 picked up feed contract and resubmitting in the fall of 2010. Any thoughts?

[charliep]

I would be cautious in making sure the barley is in selectable. What was the factor that prevented from getting selected last time? Do you have a maltster/exporter that is willing to commit to taking it as malt in August?

Don't know your location but feed barley could get interesting this next year. Compare what is likely to be produced to a consumption forecast (feed and malt) and this will show extremely tight supplies. Your risk factor is US corn with the crop in exception condition (noting comments about Iowa). Depending on wheat quality this fall, will have US corn coming north in 2010/11 and this will limit gains in feed barley prices.

[SASKFARMER3]

Get this we have malt to Canada Malt and Richardsons. Delivered and paid. But with the shitty weather Canada Malt is worried about malt for 2010. Would love to buy now to fill our 2010 contract. But our lovely CWB says those boys (us) have got enough malt this year and no more, even if a company wants the product. Yea nice system. So we have to store till August 1st then Deliver stored product to Canada Malt. Love the CWB and all its wisdom.

[charliep]

Just curious if there is any cashplus malt barley contracts being offered by maltsters/exporters. Would seem to be the solution to end of the year malt barley sales opportunities.

[charliep]

Perhaps part of the reason is to squeeze the two selectors you mentioned to take existing contracts. An issue in the past is the ability to walk on contracts for a quality issue (real or otherwise) but continue selecting from other farmers.

SK3 - Just curious as to why you would take a pooled price for your malt barley and not push for a cashplus. I'm assuming that is the case by the way. I see people complaining about the pooling system but they don't use a product like cashplus to get money up front (or at least have not done their homework in terms of offered price). The CWB tells me (gov't guy) that farmers indicate their preference for the pooling system over cashplus by usage. If there are contract issues on the CWB or selector side (i.e. not offering), this highlights another issue that can be resolved.

[charliep]

My advive to you is if you can buy it out and hold. You should not lose in the feed market either way as the livestock section "slowly" crawls out of a long troublesome term.

Like Charlie said, unless your spec's are so out of line, my feeling is that your barley will all of a sudden be "good enough"

[charliep]

One thing I would look at in my decision is the CWB PRO (June version out today). New crop 2 and 6 row new crop forecasts are $3.20 and $2.75/bu ish (before trucking allowances, VIP, low protein premium, etc and assuming a $60/tonne CWB deduction). You need to subtract the cost of pain in buying your contract out and include this in your evaluation of whether to proceed.

[Hopperbin]

Charlie how are our competitors doing for malt supply like Australia and Europe, just thought I would ask as I am not up on that and do not grow barley this year but just wondering just the same.

JD3007 can you get the specs on the malt you submitted this last year? Would help to decide also. One thing we know is barley acreage is down, and around my place it is yellow a lot. Perhaps a lot of thin stuff to come. Our area seems to grow a lot of malt many farmers get 80 percent or better acceptance over the years, she is yellow.

[Hopperbin]

I don't think cwb pro should even be considered. They are most likely out to lunch and disconnect.

[SASKFARMER3]

Charlie we had a contract with Canada Malt they took all contract the CWB board wont let me over deliver to them.