Good supply of malting barley in Europe
Despite a smaller acreage of spring malting barley in Europe and the drought in early summer the supply of malting barley remained good in 2015. Apart from regional low protein values, the qualities were satisfying in most cases.
Better yields per hectare in France could not compensate for a smaller acreage: The production of spring malting barley was considerable smaller than in 2014. Despite the weather, the quality was unexpectedly good. A surplus of 1.0 mio.t is possible. And the large volume of winter malting barley also compensated for the smaller production.
Great Britain reported good qualities, too. The second half of the harvest was affected by rain. Nevertheless, a high proportion of barley suitable for brewing and a surplus of about 500,000 tonnes from England and Wales could be achieved. Good protein values and yields above the average were also reported from Scotland. Here market participants expect a surplus of 40,000 tonnes.
A larger acreage and higher yields than in the previous year resulted in a slightly larger production in Denmark. The export surplus is approximately 1.0 million tonnes. However, with an average of 9.5 percent regarding protein, some of the goods are expected to not meet the requirements of maltsters. The average protein value in Swedish batches was 9.3 per cent, which is also not very positive. This will also determine how high the export surplus will be. Theoretically 200,000 t could be possible. Some market participants expect additional purchases due to the low protein. Pre-germination was also an issue in the north and west of the country. Otherwise, good yields and a larger acreage characterized the 2015 harvest. The Finns have suffered a very cold and wet summer and thus a late harvest: there were very large differences in yield depending on the region, but also between the farms. In addition to a smaller acreage and lower yields, the protein value was also quite low.
The German farmers achieved good harvest results despite a dry and very hot summer. The protein values varied strongly depending on region and humidity, according to Braugerstengemeinschaft e.V. The Netherlands reported a slightly larger acreage and higher yields than in the previous year. The qualities were satisfactory.
The qualities in Austria were also good, with some exceptions regarding the protein values. With an almost unchanged acreage, the production was at the same level as in 2014. However, there is talk of a slight shortage in malting barley. This will be compensated with supplies from the eastern neighbouring countries though.
Market participants in Slovakia talk about one of the best harvests in the past decade. On a slightly smaller area a slightly higher yield was achieved. Good screening and protein values completed the picture. A surplus of about 85,000 tonnes is expected. The Czech farmers achieved the second best result in yield in its history. The barley is supposed to have very good malting characteristics. A surplus of 200,000 tonnes is expected. In Hungary, there is talk of a slightly larger acreage with good qualities and quantities regarding malting barley. Good qualities were also reported from the south of Poland. Generally speaking, yields and qualities in this country have suffered from the dry growing conditions during the vegetation period.
Demand for malting barley has been only moderate for weeks. Maltsters and brewers are well supplied. In addition, there is no demand from third party countries. Prices have declined. Great Britain could very easily guarantee the lower limit of the protein values in 2015. Therefore, the requirements for barley with a minimum protein value of 9.5 % with a fob price of EUR 167.00 € / t for January are slightly higher than the propositions of the Danes with € 166.00 / t. The bonus for malting barley to feed barley in Denmark for front dates is very low at the moment with approximately 2.00 to 3.00 EUR / t. This is why currently not many goods are being offered. Therefore, market experts expect a major offer from these origins. Due to the low protein value, a significant part of the product will also be used for feeding. For the harvest 2016 bonuses of around EUR 22/t have been mentioned for next October referring to October 2015. There are hardly any sellers for these dates. On the other hand, buyers do not want to accept these prices. This is why hardly any trades have been made. Franco Upper Rhine, rates of about 190.00 €/t have been discussed for January for quite some time. For 2016, the acreage is expected to stay unchanged in Europe. Only for Great Britain an increase of around 10 to 15 percent is expected.
