Pre-Christmas barley exports offset by slow autumn

By FWi staff

PRE-CHRISTMAS barley exports have risen this month with trade estimates expecting as much as 150,000 tonnes to be shipped in December.

But although this is an encouraging volume it needs to be weighed against disappointing exports in October and November, said Cargills Ian Wallis.

“In some cases, barley bought for movement in October has been rolled forward and is now finding its way onto the boats currently being loaded, although most of the material being shipped will be coming from intervention stocks.”

Ex-farm spot values are currently between £68-£70/t depending on location. Intervention prices are similar, with deliveries made today at £75.60/t delivered.

Intervention offers are slower than in 1998, with about 25,000 tonnes taken to stores at present.

These deliveries have predominantly been from inland areas where, once haulage has been taken into account, the support price is more competitive than port, said Mr Wallis.

He believes ex-farm values will continue to trade around intervention levels unless there is a significant drop in the value of Sterling.

New-crop barley values are also trailing around intervention values and next season the basic Euro support will be reduced by 7.5%, said Mr Wallis.

At todays exchange rate this would equate to a delivered store price of just above £71/t.

“Off-the combine prices currently stand at about £60/t,” he said.