European spring barley with high yields and low protein

In Europe the spring barley harvest is considered a good average from the current perspective. Protein levels are, however, often at the lower end of the desired scale. Regional harvest has been completed.

In France, market participants expect an average crop. The stocks have recovered well from the spring drought. However, it is not yet clear what effects the rain had before and during the harvest. Effects on germination are not excluded. The screening also suffered.

Harvesting in the UK started with low protein values, which were able to recover later in the main growing areas. High yields and good screening values characterize the image of the harvest up to now.

High yield and low protein are also expected in Denmark. Local rains have taken out the speed of the harvest a little bit. In Denmark the excess of barley is estimated with 750,000 t. There is talk of a good healthy quality. In Sweden, similar results are expected. In the entire Scandinavian region, according to RMI Analytics, 55% of the qualities are rated as good, 28% as excellent. 11% are described as fair, only 6% as poor. The yield in Finland shows large differences at the beginning of the harvest. Drought had a negative impact in the west of the country.

In the early harvest areas in Germany the yield has been characterized as good so far, from currently about 5.2 t/ha for spring barley. Due to the prolonged drought the goods could be harvested at the right time. The regional differences, but overall below-average rainfall in the spring, however, depending on soil conditions, led to drought damage. Very heterogeneous qualities of the already harvested barley are the result, according to Braugerstengemeinschaft e.V., Munich, an industry body. The average protein levels are slightly above last year’s low level. In the Netherlands, effects of the weather were not detected. There is talk of very good qualities.

Two thirds of the Austrian harvest show the optimum range of protein values. Regionally there are still significant harvest delays due to weather conditions. Excellent yields of up to 8 t/ha in the Czech Republic have lowered the protein content by 0.5 to 1.0% compared to the previous year. There is still the risk of germination and mould due to continuous rain in the later areas. A similar picture emerges in Slovakia. In Poland, very good yields are reported. The protein values here are also in the desired range. In Hungary qualities have been suffering since the beginning of August due to rainfalls. 50% were harvested. Screening depends on varieties and soil conditions.

Russia is still at the beginning of the harvest. Here, too, low protein barely was reported. However, the farmers are satisfied. Germination could be an issue. However, the Russians will probably get along without imports this year again.

The market for spring barley seems to be unsettled at the moment: There are nearly no sellers, except for the UK and Germany. In Denmark and at the Moselle sellers are almost non-existent, despite a high premium on feed barley. In Denmark, the premium is around 25 to 30 EUR/ t, on the Moselle even at 40 to 45 EUR. Due to the good harvest this year and good supply to customers, the premium is also considered high, and not necessarily justified. There could be a correction here. Until October/November and partly up to December maltsters and brewers will be well provided for.

The current Fob prices for Denmark are said to be around 187.00 EUR/t. In the UK the price is at EUR 184.00 for the same period. Fob Moselle base in July called prices from 193.00 to 194.00 EUR/t for the moment. The Upper Rhine pays franco EUR 205.00/t in October. Thus, the courses decreased by 10 to 15 EUR/t in the last couple of weeks based on the international wheat prices. The market does not wait for the harvest 2014. The view is more focused on the 2015/16 harvest. Prices for this period are from 10.00 to 12.00 EUR/t over the 2014 harvest. This is, among other things, due to an expected further decrease in acreages.