Monday Market Briefing - 14th August 2023

As harvest progresses between showers, markets are still floating aimlessly around the £200 Nov LIFFE mark putting Nov base price feed wheat either side of £190 depending on location. The French harvest is finished leaving most attention  focussed on the quality of what’s coming off the fields in Germany, UK and Scandinavia. So far it must be said quality grains are holding up rather better than might have been expected. There are some spoiled crops out there and more will follow – hagbergs are variable but store-keepers across England are still reporting high acceptance rates for both wheats and spring barleys.  It’s not a pretty crop to look at – it will benefit from some cleaning -  but if it has the numbers it will do the job.

Malting barley markets had a panic attack last week after some traders returned from a late crop tour in Scandinavia. Some very grim photos of spring barley crops in Swedish fields did the rounds but the truth is this market faces some tough head winds. China signed a new deal with Australia for barley trade to resume so they will disappear as a buyer of European grains when the Aussie crop arrives. Beer sales worldwide are reportedly 10% down this year which has led to heavy stocks of both old crop barley and processed malt being stuck in the system. Finally the French winter barley crop this year was excellent unlike last year and this will be heavily used in Europe when demand eventually picks up. The European market as a whole could probably function quite happily this season without any Scandinavian barley at all. My advice ?  If you want to move it before Christmas don’t hang about.

One market that is enjoying heavy buying interest is oats, a lot hinges for the UK on how the later sown spring oats behave but prospects for this market look pretty good at a premium to feed wheat, there will be good bids around if you want to move that crop on and hold onto wheat as seems to be the fashion these days.

Have a good week.