Scandinavia: Malting barley market situation at the end of 2005
Here at the end of 2005 there are considerable amounts of grain to sell, not only malting barley, and it has been an interesting experience to see that the “Spanish disaster” could be solved with other origins than Danish grain (few exceptions), H. Abildstrøm & Co ApS commented on December 30. “Also that it could be solved – so far – without causing any serious price-increase here in the north. At least upto now.
On the contrary malting barley prices have been sliding continuously from the end of September. Reasons have been dealt with earlier on but since it’s recap-time: a) No Russian demand, b) No Polish demand, c) Uncompetitive price levels 1) mainly to 3rd countries, 2) against U.K. prices.”
“Due to the latter we missed several opportunities direction Germany, Belgium and France. The domestic market in Denmark is split in 2 with the western part of the country with huge cattle and pig farming running a fairly high feed barley price ( € 114,- for December) which consequently forming a base on which malting barley suppliers must calculate their costs for screening, guaranteeing malt quality plus the logistics involved. Thus we have seen delivered prices in Jutland 2-4 € above Island/Swedish FOB prices and at the same time losing a lot of malting variety barley to the local feed-market.
A lot of 2005 farmer grain has not yet been concluded with the grain collectors, who in turn unwilling sell short in any considerable volumes. When these volumes are finally coming to the market/being settled, we might see a further drop in domestic prices.
All these factors are ending up in some “very nominal” prices below since the turnover is so small that conclusions are becoming individual and could vary more than 2 € from day to day on the same variety and terms. Obviously in such a thin market the parties are keeping any business extremely quiet. One thing, however, seems certain. BARKE barley has practically lost its premium (over Prestige).”
Înapoi
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