HARVEST BARLEY prices are holding above intervention levels as the late wheat crop frustrates buyers, but the window of opportunity could well be short-lived, say traders.

Current values of £56-59/t ex-farm for harvest movement are being supported by good export demand to the Mediterranean, as logistical problems curb Black Sea shipments.

European sea freight rates have also weakened by £1.50-£2/t since harvest started, due to the late wheat crop, according to Jonathan Hoyland, barley trader at Banks Cargill.

“But once the wheat starts coming on in volume those boats will be lapped up quite quickly.”

The UK harvest is about 80% complete, and yields and quality appear to be good.

“The majority of barley would do the intervention specification with a bit of polishing up,” said Glencore‘s Matthew Costar.

This year‘s requirements were likely to be max 14.5% moisture, min 62kg/hl and max 12% admixture, he added.

Intervention would put a base of about £60/t ex-farm in the market for November, but any barley which did not meet the intervention standard would struggle to find a decent market after the end of August, said Mr Costar.

Domestic demand would be slow at just a £2-£4/t discount to feed wheat, and export demand, while strong at the moment, would also drop off after harvest.

“The export market in the long run is quite tough,” said Mr Hoyland.

“One of our main markets (Spain) is going to buy a lot less this year and the Black Sea will take most of the third country business. If there was any price spike I would take it.”