Scandinavia: Prices up for 2007 barley crop

After the “first” rains in France in week 19-20 the market took a relaxed attitude but only to be worried again, when the farmers in parts of France, Southern Poland, Czech, Slovakia, Romania and Ukraine could derive from their field walks, that the rain had arrived too late, H. Abildstrøm & Co ApS reported June 5. Thus after having seen prices for 2007 crop dropping by 4-6 € during abt 10 days they gained again up to today 10-12 €. The recent supply/demand prognosis for 2007/2008 is beginning to look very tight and is contributing to the support of the underlying firmness.

Crop 2008 is still in focus but only with limited turn over up here. Whenever a malt-contract is being concluded we recognize the demand for barley cover even into 2009. Presently market rather uncertain which is mirroring French conditions. The English and the Scandinavians have no hurry to add to their already substantial sales but closely watching field development. This type of vacuum could eventual last till harvest or be broken by bad news from somewhere (globally). Meantime sellers will be scarce.

Calling March – April – May for the spring months we have again scored a record weather wise by stating the average temperatures in the 3 months : March 6,1 deg C. April 9,2 and May 11.6 giving all time record for the spring months of almost 9 deg C. This is valid for Denmark and greater parts of Sweden.

Apart from a few dry spells we have had scattered rains and limited thunder storms in the Scandinavian region rendering sufficient moisture for the spring barley. Right after the sowing we had the first dry period but under rather cool conditions the root net established in such a way that when the rain came the tillering performed very well. Status today: excellent development, Denmark and South Sweden generally stage ZADOKS 46-50. Mid-Sweden: ZADOKS 30 – 37. Presently very hot up there, upto 26 deg C. average but with showers forecast next week, continued development considered excellent.

Finland finished sowing volume of spring barley between 12 and 20 May. had dry period as well, thereafter adequate rain and now the years` first heat wave (24-27 deg C.) this combination of patterns found favourable to the development of the barley and so far do not necessarily pointing at high proteins. Spraying for weeds commencing one of the next days. State: ZADOKS 12-17.

Prices

Basis 3000 ts, max 14.5% moisture, FOB. 1. ½ June

Crop 2006
Dan. Prestige/Power/Sebastian max 12.5 protein (if available) € 240,00 (nominal)

Crop 2007 basis 1.½ October (14.5 moist/max 11.5 pro)
Dan/Swed Prestige/Power/Class/Tipple/Sebastian € 215,00

Crop 2008 basis 1.½ October (14.5 moist/max 11.5 pro)
Dan/Swed Prestige/Power/Class/Henley/Tipple € 198.00

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