Malt Barley - Europe

[charliep]

An interesting article from today's emalt.

Begin quote:

" EU: Malting barley premiums close to record high in Europe

Malting barley is resisting the slump in prices of other grains, raising its premium "close to" a record high in Europe thanks to the knock-on effects of the dry spring, and growing world demand for malt, Agrimoney.com reported on September, 19.

Malting barley futures have, while falling some 7% so far this month to E258.00 a tonne, outperformed milling wheat in Paris.

On cash markets they have done even better, standing at more than EUR260.00 a tonne in the French port of Creil in September.

With French feed barley going for EUR195 a tonne delivered Rouen, down EUR7 a tonne this month, the premium for malting grain has reached historically high levels, Jack Watts, senior analyst at the UK's Home Grown Cereals Authority, said.

"I am not sure it's a record, but certainly close to that level," Mr Watts said.

The rich premium is largely down to European harvest results which, for malting barley, have not - as in wheat - surprised in their resilience.

"The quality is pretty poor in Germany, France and the UK because of the dry spring," Mr Watts said.

The high grain protein levels encouraged by the dry conditions, while beneficial for milling wheat, are considered a setback for malting barley."

End quote.

[charliep]

Using a Euro conversion of about Cdn $1.36. European prices equate to about $360 to $365/tonne for 2 row malt barley and $260/tonne for feed. Current domestic malt barley prices (in store west coast/thunder bay) are $383/tonne. Export quotes closer to $370/tonne. Work the math but that equates to a price of about $6.50/bu delivered local elevator.

[ianben]

Hi Charlie
Malt prices are at record
premiums as far as I remember here.
Our last load of winter malt was at
least £50/tonne over feed and springs
are even higher.
Last year our barley was rejected at
1.80 nitrogen and through the Coors
Western grower group I was able disscus
this with Coors main buyer.
He said he could not use 1.80n even with
a smaller premium. Cost us £40 /tonne
due to the contract we had which was
linked to wheat futures.
Today they will accept 1.85n at this
record premium.
Supply and demand I know but still
leaves a bad feeling.

[hedgehog]

they can malt anything, everything else is lies.

[hedgehog]

just sold my malt barley, £200/ton average and 3 ton/acre. best ever.
land too wet to sow next yrs crop though.

[mcfarms]

Ianben
Would you please explain to me what is meant by the protein scale there I read British barley at 1.8 but here we would be ? Have asked a couple people here but so far haven't got a real good explanation . Ours is pretein as well but for sure different how is yours measured?

[Burbert]

Never were truer words written "They can
malt anything, the rest is lies." Right on
Hedge, bullskat prevails in the market
place!

[hedgehog]

mc farms , we are judged on nitrogen, under 1.6 pays up best.
multiply N by 6.25 i think, you get protien

[charliep]

I did the math and that works out to about 10 % protein at 1.6 and 11.5 % at 1.8. Is this based based on dry measure. Our protein here is about 11 % at 12 to 13 % moisture (will look for mcfarms comments on the specifics). In the current system, farmers are paid small premiums for lower protein. Having said, some of the brewers can handle higher protein in their malt (North America). It becomes important here to match up what is in a farmers bin with the maltster (export and domestic) needs.

Some of the highest valued malt is going to micro brewers and others who have very specific needs around enzymes and other issues to achieve there customers taste needs. They are getting very specific on variety and agronomics (way the crop is grown). Way of the topic but an interesting meeting I attended last year brought brewers (big and small) together with farmer to talk about their needs and approaches to meeting.

[charliep]

I should raise the range from 11 % (ideal for many maltsters) to 12.5 %. Depends a lot on the year as you both commented about the UK this year. Many others including mcfarms who have grown malt barley/have forotten more than I will ever know so will get their comments.