Barley firm on world-market interest

By FWi staff

UK barley values remain firm as they gain support from new interest in the world market.

Ex-farm feed barley has climbed about £2 over the past couple of weeks to about £76.68/t.

A few sales were completed last week, including one to Cyprus and another to Israel.

As a result barley once again dominated the EU export awards, noted Cargills Ian Wallis.

At last weeks tender, the EU grains management committee granted 43,000 tonnes of export awards and open market licenses at a maximum rebate of 57.18/t (£37.76/t).

However, despite this new business for European barley, the UK futures values have failed to shake off the pressure from the wheat market.

September barley fell over £3 during the week to £73/t for September, with November at £74.75.

Intervention continues to be a strong option for farmers who still have barley on the farm, with the value for deliveries made today at £83.41/t.

But the intervention season finishes at the end of May, and farmers should keep this in mind, said Home-Grown Cereals Authority economist Gerald Mason.

Although the strength of Sterling has weakened intervention values over the past few weeks, this outlet continues to offer a slightly higher margin than the free market.

“But farmers dont know the final price in Sterling when they make an offer for intervention,” said Mr Mason.

Intervention has ruled the market this year, and free-market prices have reflected the intervention market, he added.