That says everything doesn't it. If malting Barley had been too dear that wouldn't be the case.
Combinables Price Tracker
- Thread starter Jerry
- Start date
fieldfarmer
Member
And I bet anything still to be delivered under malting contract will suddenly fail testing and be bought as feed and sold on at feed price.
Or kept in an old shed somewhere waiting for a jump in prices and then miraculously passing the test and making next year's whisky!
- Location
- North of Perth
Not quite, they can't shift the stuff.diageos shares tanked a while back.
Chivas, south side of Glasgow?
- Location
- North Yorkshire
I was told yesterday by a trade guy that one of the ethanol plants is busy reneging on thousands of wheat contracts and replacing it with spot imported maize and also buying it a long way forward. I would guess it to be Ensus but he didn’t say
- Location
- Darlington
Wasn't it you who said recently that you could buy maize, very competitively well into 2025?
Heart breaking for us arable men, but a no brainer for any end user to tie in at least a percentage of their requirements.
- Location
- North of Perth
Where's this cheap maize coming from ? not a cheap crop to grow
How can they renege?
- Location
- North Yorkshire
No idea he the guy is in the trade but not a corn trader so had no axe to grind. The firm he works for buys cereals including maize. As for how can they cock on the deal I have no idea unless they are actually selling tonnages at a loss thinking it will be more than made up for with the extra ethanol yield from maize bought at the same price as the wheat was i.e. £190? Chinese whispers and all that
- Location
- North Yorkshire
Yes it was the deals are still on the table at about £6 over spot now as opposed to the same price, but spot has slipped back since then
fieldfarmer
Member
The scenario you have explained would not be reneging on the deal though, just a decision to not take physical delivery but sell on the contracts to someone else , possibly at a loss to themselves.
- Location
- Northumberland
Sub £200 in the spring?
- Location
- North Yorkshire
As I said I wonder whether that is what’s actually happened as opposed to reneging and gossip has made it into something it isn’t. Either way if they are flooding the market with unwanted wheat and using maize instead the demand won’t be there to drive the physical market up
- Location
- North Yorkshire
Yes Spring 25
fieldfarmer
Member
Thats somewhat different statemant to. " busy reneging on thousands of wheat contracts " .
- Location
- North Yorkshire
Read what I said, I was told that but I wondered whether it was in fact what had happened. Either way they aren’t using wheat so the result is the same
- Location
- Huntingdon
They cash settle it, (buy out of it) so not reneging just settling the difference vs current market.
C B