Malt vs. Feed Barley

[farmaholic]

Viterra quoted new crop Select 2 Row Malt for $5.05 a bushel and Johnston's quoted new crop feed barley @ $6.25 delivered(unsure of destination). Boy what a premium for Malt. Can someone explain this to a simple hillbilly like myself, what am I missing???

[jimbobobaroo]

I hope that feed price is delivered Alberta, not Saudi
Arabia! That'll deserve a phone call.

[farmaholic]

Good one Jimbo.

[farmaholic]

FYI: Same site(Johnston's) Feed wheat--sept movement @ $7.23(destination unknown) and Viterra #1 RS 13.5 px $6.59. Excuse me, but WTF.

[gregpet]

Maybe small quantities filling some niche markets? Johnston's
usually has the best price out there.

[hobbyfrmr]

Feed barley market is easier to sell into. Find out the destination and math out the cost of freight. Otherwise negotiate FOB farm price. Make sure that the buyers are liicensed and bonded with the CGC. If feed price is still higher than the malt price and you are satisfied with that price then....sell it for feed. Who cares if malt is less than feed if the price is profitable?

[hobbyfrmr]

Feed barley market is easier to sell into. Find out the destination and math out the cost of freight. Otherwise negotiate FOB farm price. Make sure that the buyers are liicensed and bonded with the CGC. If feed price is still higher than the malt price and you are satisfied with that price then....sell it for feed. Who cares if malt is less than feed if the price is profitable?

[westsider]

WOW! $6.25 for feed barley! sign the farm up! jimbobobaroo did you make that phone call? my bet is it is conveniently no longer available or delivered some place so ridiculous that it makes more sense to haul it to town to JRI for $4. I have nothing against Al as he is just trying to bring some attention to his company, however, this kind of quote (huge difference from a bid) does not do one bit of good for the grain industry, and that's a fact.

[sumdumguy]

I agree westsider. It just causes trouble. Without
all of the facts, comparisons are impossible.

That is like someone told me they sold their land
for $30,000 per acre except fact be known it was
a 6 acre yardsite.

Give me the facts, then the goods.

[farmaholic]

Johnston's phone number...800-324-7778.
Biggest thing is freight--wouldn't mind living on the doorstep of this bid.

[jimbobobaroo]

Westsider, you are correct. Al said he was trying to
bring attention to bids across the border and should
have clarified the info a little better.

The 6.25 feed is actually malt delivered North Dakota,
the 7.25 feed wheat is actually good quality RS wheat
delivered North Dakota as well.

[Jagfarms]

The $6.25 price is for a 6 row malt barley. I called into
Johnstons this morning. The feed price for new crop
feed barley is around $4 bu.

[jdepape]

Just talked to Allan Johnston - the 6.25 is malt
barley and the $7.23 for wheat (delivered) is USD
delivered to a US buyer.

Call it rational exuberance or just growing pains
but as more and more prices emerge, we will see
honest mistakes along the way. On Friday, the
first day of the open market, I heard four different
prices for spring wheat. Always ask for details.

[bucket]

Mr. depape

How is it that prices are varying so much in the first few days?

7 dollars one day, the next day its 6.50 and yet there is no market indicating the movement? Seems an odd way to build confidence in an open market?

[TOM4CWB]

Bucket,

Many folks marketing our wheat/bly try to do back to back sales... if a customer steps up and agrees to a decent/better basis... bingo the price changes and goes up... or down depending on whats going on.

This happens every day with pulses and canola.