Prices for malting barley under pressure

In several countries of the EU the harvest has started or is already advanced. In regions with very hot weather this summer, the effects on the yield cannot be overlooked. Other regions are expecting a good harvest. The prospects are heterogeneous.

North West Europe

Reports for France vary greatly. At least 30 % were harvested by the beginning of August. The results are expected to be 3-5 % under last year, the screening will be up to 83 to 85 %. The protein values range from around 9,5 to 10 %. It cannot be ruled out that the heat could have an impact on the yield and the quality.

In Germany, the first results of this year`s harvest surprised with low protein values of below 9 %; later on they increased to up to 11 %, but still the protein content stayed low. After initial troubles the screening went up to 85-90 %, but it stays heterogeneous. The drought in July could cause a negative impact on the yield of the later regions.

In Great Britain the sowing and thereby the harvest were delayed due to heavy rainfall. Low protein values are expected due to the rainfalls. However, good screening and good yields are expected.

Scandinavia

In Denmark, the harvest started in the middle of August. The hot and dry July could shrink the yield by a small amount, but nevertheless very good qualities are expected.

In Finland, harvest can start earlier than expected. Warm and regional dry weather accelerated the development. Compared to last year, the total amount of the harvest could be higher by around 13 %. However, high protein values and unsatisfying grain formation are expected.

In Sweden harvest has also begun and there is the talk of good yields and good qualities.

South East Europe

In Austria, the harvest is already well advanced. The protein content lies between 9 and 13.5 %, the screening mostly between 80 and 92 %, outliers are just above 70 %. A weaker development of the grain is expected in regions with late harvest due to the heat. A variation in the yield is also caused by the different ways of treating fungicides.

In Hungary, the harvest has started. Low yields are expected due to high temperatures. So far, it is impossible to make any substantiated statements about the quality though.

Heavy rainfall in the south of Poland restricted the growth of the plants. The disease pressure is much stronger here. In the middle and the north of the country, weather conditions were better. The protein content is expected to be in the required range.

In the Czech Republic, the late sowing, followed by a wet and cold May, led to a negative impact on the growth of the plants. The hot July on the other hand could have an impact on the screening and the protein content. Therefore an average quality is expected, probably with small screening. The protein content could be between 9 and 13 %.

In Slovakia, 60 % is of the harvest is already done. Experts expect average yields of different qualities (drought damages).

In the European part of Russia, more than 30 % of the harvest is already done. Here, too, the high temperatures in June lowered the expectations of the yield. Moreover, high protein values were measured. Rainy and cold weather conditions in July also had a negative influence on the quality. They might have to import for quality reasons.

Prices under pressure

Diseases rarely appear in Europe this year. If they do, they appear only regionally or at normal extent. Despite the uncertain outlook on the current harvest, the prices for malting barley in Europe are under pressure. Besides the weak tendencies at the international stock exchanges, the forecasts for risk factors of the late spring and the periods of heat in July turned out to be wrong. The bonuses that had already been priced in are taken back. In France and in Denmark, the awards for feed barley went from EUR 40-45 down to EUR 30/t. Therefore malting barley in Scandinavia and UK is currently assessed with 188 EUR/t for October 2013. In May, the prices were at 214 EUR/t to 219 EUR/t. At the Upper Rhine, the price is currently 212 EUR/t for October. In May it was 238 EUR/t.

Despite a reduction of the acreage, a slightly higher surplus of brewing barley is expected in the EU at the moment.