Was at JRI yesterday morning - they are hearing $5.40 for good malt ? One buddy rolled the dice and stuck in all Barley for cereals and seeded early - he is going to do well - should have a most of it off before Monday - good to see the odd good "luck" story this fall
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The local hutterites did the same thing. Planted 2500 acres barley. Harvested it , contracted for malt overr $5.00. They have also locked in a lower feed barley price. They have ontracted a much lower feed barley purchase price from same line company that accepted the malt.
Their loose plan is to deliver malt and take home feed.
Arbitrage. Efficiency. Thats how you make money.
They will run the feed barley through the hog barn. So profit on the grain spread and then profit from the gains on high hog prices
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The local hutterites did the same thing. Planted 2500 acres barley. Harvested it , contracted for malt overr $5.00. They have also locked in a lower feed barley price. They have ontracted a much lower feed barley purchase price from same line company that accepted the malt.
Their loose plan is to deliver malt and take home feed.
Arbitrage. Efficiency. Thats how you make money.
They will run the feed barley through the hog barn. So profit on the grain spread and then profit from the gains on high hog prices
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There is an organic malt barley market, I have never tried for it. In February I signed a contract for feed barley at $8.00/bu FOB Farm. There is the option that if it's really plump and heavy and qualifies for "milling" barley, they pay $9.00/bushel. Usually the weather kicks me into the feed market. I am satisfied with that , usually I need the money and movement is brisk.
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