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.

[mcfarms]

Thanks for the expanation still not completely clear but it helps as was reading reports out of europe using these numbers and wasn't sure what methodology was used to arrive at them, Traditional protein levels for acceptance in western Canada are 10-12.5 some brewers (modelo) can go a little higher.
Protein and quality of this years crop on our farm are very very good better than 09 in my estimation even ranging from a never seen before at least here 9 to 10.8.
Yields were pretty shiny too ( the new bagger is coming at 1.30)
Interestingly malt can have too low a protein.
.

Ps yes you can malt some real wide specs but then the end product usually reflects it. But as far malting everything no thats not true, however with the new enzyme technolgy that may change things again .

Loooks like a good year to grow malt however if you didn't have a production contract you may have to rely on offshore sales as I hear the domestics are likely going to fill their needs off contracts alone.

Hey maybe even Burbert will get a chance to fire up that 3 tonne and head to town with a load or two

[ianben]

This is taken from http://www.ukmalt.com
as I did not know, thought all malt was
bought on nitrogen. learn something
everyday ,
The amount of nitrogen within a
barleycorn is a direct indication of its
crude protein content; simply multiply
the nitrogen analysis by 6.25. For
brewing in the UK normally 1.60% to
1.75% nitrogen (10.0% to 10.9% crude
protein) is required in the malting
barley to achieve the malt specification
for most brewers needs. If the nitrogen
content is too low then the finished
malt may not match the needs of the
brewer's yeast and other brewing
parameters. Conversely the starch
content in the barley reduces as the
protein increases, and it is the starch
which is modified during malting, and
ultimately converted in the brewers mash
tun into sugars, which the brewers yeast
then converts into alcohol.

Malt for export brewing requires higher
nitrogen in the malting barley it is to
be made from, usually in the range 1.70%
to 1.85% (10.6% to 11.6% crude protein).
This is predominantly for lager beer,
and the higher protein content barley
produces an excess enzyme level than is
needed for malt starch conversion, which
allows unmalted starch to be converted
in the mash tun. Such starch can be in
the form of rice, maize flakes etc.

Malt for distilling is measured in
spirit yield, the production of which
requires a high starch content (and
hence lower protein) in the malting
barley. A nitrogen level of about 1.5%
in the barley is considered optimum and
will be the maltster's target, if the
crop quality allows, but distillers will
use up to 1.65% nitrogen content.

The ability to test bulks accurately for
nitrogen content is imperative to the
success of the maltster in making malt
to the customer's specification.

To view the latest information on the
nitrogen levels in which maltsters will
be looking to purchase barley this year
click here.

Seeded next years malting barley in last
two days, 50% expected yield sold
harvest 12 @ £195/tonne.

[hedgehog]

ianben, who is paying £195?

[ianben]

Frontier ag, which is for our Canadian
friends. Allied Grain (owned by
Associated British Foods - ABF) and
Banks Cargill Agriculture merged in
April 2005 to form Frontier Agriculture.
Allied Grain was based in Norfolk. Banks
Cargill Agriculture had been formed in
February 2001 between Cargill and Sidney
C Banks, a UK grain trader based in
Sandy.

Early June they where offering
£195/tonne ex farm for 1.75 max n Flagon
or Casarta winter barley harvest 12
delivery into Coors Burton on Trent, we
did 3 loads. Should have bought seed
from them but they could not supply
flagon so they agreed we could use our
own.
Sold a load of OSR/canola same week @
£425/tonne bonuses so am hoping for over
£480/tonne including bonus

[hedgehog]

ah yes, june was THE month to sell!