Low N Malting Barley.

Chae1

Member
Location
Aberdeenshire
What's everyone elses thoughts on the low N malting barley job?

Spot price at moment £130/t. £5 premium over feed barley. Nov 20 futures at £175/t so malting barley discounted £45/t to feed wheat.

Don't know about anyone else, but germination been a problem here. Sample barley in store, all good 99% germination. Put same barley on a lorry into a store. 90%, lorry sent back again. Sample rejected load back to same merchant. 99% germination. So it drops about 10% once on a trailer.

Personally I'm fed up of it. Putting in winter barley at moment.
 

Farmer Fin

Member
Arable Farmer
Location
Aberdeenshire
It’s been a pain in the arse here and this area with skinning. We have had 1 load rejected which went for feed at £110 by time we paid the haulage. We are getting deductions on every load for skinning at the moment but no more rejections. We seem to be upping the skinning by 3% just by loading it on a lorry. Some would say the malsters have too much barley and are looking at paying as little as possible for it. Annoying as they were all screaming for the stuff last winter. We are putting an extra field of wheat in. Does winters barley leave any better margin than spring? I would imagine the area will be well down next year. Probably be £200 at harvest at next year!
 

Frodo

Member
Location
Scotland (east)
I have had more rejected this year than in total since 2004. Guess my luck has just run out. Others are definitely getting on better. Given the difference between spot and contract it’s hard not to be a bit cynical, but even I can spot skinned barley. Other years tolerance would have been relaxed.

fortunately the yields seem good and in May when we were in drought things probably looked even worse. It’s just a case of what could have been.

be interesting to see what contracts are available next year.
 

Frodo

Member
Location
Scotland (east)
It’s been a pain in the arse here and this area with skinning. We have had 1 load rejected which went for feed at £110 by time we paid the haulage. We are getting deductions on every load for skinning at the moment but no more rejections. We seem to be upping the skinning by 3% just by loading it on a lorry. Some would say the malsters have too much barley and are looking at paying as little as possible for it. Annoying as they were all screaming for the stuff last winter. We are putting an extra field of wheat in. Does winters barley leave any better margin than spring? I would imagine the area will be well down next year. Probably be £200 at harvest at next year!
How does your contract work for skinning? Mine are less than 8%😀🥃8.1 feed
 

Frodo

Member
Location
Scotland (east)
Skinning nitrogen and germination. Currently drying for feed.

use a lot of hen pen. We had more flat last year, but for some reason it didn’t skin, where anything brackled This year has. Most is 9.2% skinned., so probably just one thunderstorm of malting.

obviously with 20:20 hindsight I would have done things different, but in May the crops were burning up rather than asking for growth regulator. I have fields which go fromFrazzled to flat in 10m.


As said yields are good, costs are hopefully low, although this drying business is a bit tedious.

it’s not a disaster just maybe a reminder to manage expectations.
 

HAM135

Member
Arable Farmer
Quite happy with ours this year,averaged over 3t/acre and all contract tonnage away with no deductions other than weight correction,price disappointing, luckily had more on contract than usual so only got a couple loads left to find a home, still planning to grow a good bit less of it next year though,bit more rape and wheat.
 

melted welly

Member
Arable Farmer
Location
DD9.
What's everyone elses thoughts on the low N malting barley job?

Spot price at moment £130/t. £5 premium over feed barley. Nov 20 futures at £175/t so malting barley discounted £45/t to feed wheat.

Don't know about anyone else, but germination been a problem here. Sample barley in store, all good 99% germination. Put same barley on a lorry into a store. 90%, lorry sent back again. Sample rejected load back to same merchant. 99% germination. So it drops about 10% once on a trailer.

Personally I'm fed up of it. Putting in winter barley at moment.

had a pretty crap yr last yr with 300t of chronicle bumped for skinning. This yr I was very sparing with the roundup and been better........so far......no loads rejected yet, but movement slow and they’re only taking 80% of contracted tonnage at harvest with balance to be moved by March. Dried everything left down to 14.5% for longterm storage.

Next yr, 🤔 our merchant says they will take same tonnage from us, so I’m not going overboard with winter cropping as some neighbours been told by their merchant that they wont be buying any malt, so there’s gonna be a lot of extra wheat etc going in, especially the way the weather is just now. if we grow Wbarley, it’s as early entry for osr and the barley goes on a boat, we’ve no stock. I’ve cut back W barley, increased osr, wheat and sp barley be same as this yr, balance of land in root crops.

that’s my plan anyway, feck knows how it’ll stand up to reality :nailbiting:
 

Jimbo

Member
Location
The kingdom
What's everyone elses thoughts on the low N malting barley job?

Spot price at moment £130/t. £5 premium over feed barley. Nov 20 futures at £175/t so malting barley discounted £45/t to feed wheat.

Don't know about anyone else, but germination been a problem here. Sample barley in store, all good 99% germination. Put same barley on a lorry into a store. 90%, lorry sent back again. Sample rejected load back to same merchant. 99% germination. So it drops about 10% once on a trailer.

Personally I'm fed up of it. Putting in winter barley at moment.
yes same down here . Malt jobs a joke this year . They really don’t need the stuff this year .
 

Pebd99

Member
Location
Aberdeenshire
We’re having problems with nitrogen and skinning. Heaps tested at 5-7.5% skins then tested at 10-14% at the grain store. Only 5 loads away out of 600t so far. Into some later sown barley and not as ripe so here’s hoping it’s better although with feed barley at 130 for November what’s the point in chancing a rejection?
I’ve upped the area of osr w barley and wheat as I’m sick of malting as well. It’ll be 200 by next hairst without a doubt.
 

Chae1

Member
Location
Aberdeenshire
We’re having problems with nitrogen and skinning. Heaps tested at 5-7.5% skins then tested at 10-14% at the grain store. Only 5 loads away out of 600t so far. Into some later sown barley and not as ripe so here’s hoping it’s better although with feed barley at 130 for November what’s the point in chancing a rejection?
I’ve upped the area of osr w barley and wheat as I’m sick of malting as well. It’ll be 200 by next hairst without a doubt.
Guess the only point in chancing a rejection is if you fixed at 160 and could get 180 per ton.

I will be very wary of fixing anything after this years experience.
 

Flat 10

Member
Arable Farmer
Location
Fen Edge
Guess the only point in chancing a rejection is if you fixed at 160 and could get 180 per ton.

I will be very wary of fixing anything after this years experience.
I know you get angry with all my questions but what do you mean? Surely you did the right thing by fixing when you did? If you don’t fix what’s the point of the contract?
 

Chae1

Member
Location
Aberdeenshire
I know you get angry with all my questions but what do you mean? Surely you did the right thing by fixing when you did? If you don’t fix what’s the point of the contract?
I don't. I'm quite happy to answer any questions you have. I used to get angry when I felt you were unfairly questioning people's pictures, methods during the 2019 drilling campaign, and you weren't posting any yourself.

Right, if you fix your are obligated to supply. If you can't supply and the merchant has to buy malting barley for more than you fixed it for. You are liable for the price difference.

You can not fix it, then it automatically locks in on a predetermined date. You aren't tied to supplying this.
 

T C

Member
Location
Nr Kelso
I don't. I'm quite happy to answer any questions you have. I used to get angry when I felt you were unfairly questioning people's pictures, methods during the 2019 drilling campaign, and you weren't posting any yourself.

Right, if you fix your are obligated to supply. If you can't supply and the merchant has to buy malting barley for more than you fixed it for. You are liable for the price difference.

You can not fix it, then it automatically locks in on a predetermined date. You aren't tied to supplying this.
What if the spot is below the contract price - refund you the difference ?
 

Chae1

Member
Location
Aberdeenshire
What if the spot is below the contract price - refund you the difference ?
No chance. It nearly always is. It gives them a better average for buying it.

That's why many contracts are 50:50 spot and futures based.

Used to be 100% futures based.!

Many farmers dislike futures based contracts as they say there farmers and don't have time to follow futures prices and know when to lock them in! Personally I like them as I'm a saddo. You are in control of price you get.

In the future contracts will probably have to be based on a minimum spot price. No obligation to supply.
 

T C

Member
Location
Nr Kelso
I like futures contracts, I know that 1 need around 20 over wheat for barley to work here.
Bit simple but the average of wheat / osr net margin has to equal the barley margin. Obviously can reduce fixed costs with barley only rotation.
Have seen a presentation by a large merchant/ maltster that showed malting barley as the 3rd most profitable crop. They know it needs SFP to leave a margin.
 

Colin

Member
Location
Perthshire
No chance. It nearly always is. It gives them a better average for buying it.

That's why many contracts are 50:50 spot and futures based.

Used to be 100% futures based.!

Many farmers dislike futures based contracts as they say there farmers and don't have time to follow futures prices and know when to lock them in! Personally I like them as I'm a saddo. You are in control of price you get.

In the future contracts will probably have to be based on a minimum spot price. No obligation to supply.
Thats the trouble we can lay off risk using futures contracts but you still want no obligation to supply, can't have it both ways. If I sell wheat for may 21 I have to supply, ok if I'm short it might be wheat harvested in August.
 

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