Scandinavia: Malting barley market situation as of September 21st

Barley malting market is deadlocked as farmers refuse sell to the merchants/coops. Single conclusions in 2nd hand regime, H. ABILDSTROEM & Co. ApS commented in its report published on September 21. Malsters gradually accepting lower gradings of barley, giving in on Germination (min 93%), Protein (upto 12.5%) and varieties. Even germinative 2 row spring barley with no variety mentioned is finding buyers. Fully sellers` market and after several attempts to seek a figure, the EU 25 balance sheet with a minus of about 500,000 tonnes 12% protein became fuel on the fire.

The distance to next crop is looking vast. For a while sellers had practically disappeared mainly because of farmerheld longs. Recently sellers are back for minor quantities but at levels 10-12 € higher than 10 days ago and preferably for 2006 delivery. Million € question is: when will farmer commence selling?

The most successful Danish micro breweries now even exporting minor lots to our neighboring countries. Hedegaard Agro made result before taxes of 23.3 mio DKK against 25.4 mio last year. Turnover is up from 843 to 851.6 mio DKK but avian flu hit the departments Rose Poultry and Dan-Hatch.

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