16 May 2016
General: The malting barley on the fields in Europe is developing well - even if in some areas it is getting somewhat dry after the last period of warm weather. Also Finland and Mid Sweden are now with this sunny and warm weather in full swing with the drilling Wheat and other grain markets are nervous and funds are changing there positions but malting barley has been calm for many weeks. It is along time ago that malting barley prices have been so constant for along time. Weather will also this year be the main driver which steers the price development until harvest. In our next report we will also give more detailed information from our new family members about malting barley development in Denmark and Poland Actual barley prices FOB DK/SE Crop 15 147 EUR/t 1 H May 2016 Crop 16 167 EUR/t 1 H Oct 2016 Crop 17 182 EUR/t 1 H Oct 2017
Sweden Weather: After an early start of drilling in March in the South weather turned to colder and more wet conditions. Last 10 days very warm and sunny but now forecast giving colder temperatures and rain South: Seeding started as early as last year and was 80% done until first week of April. Good amounts of rain during April followed by warmer weather during May. Soils are now rather dry and most grains would benefit with some rain after warm and sunny Mid: About 20% of the acreage was seeded on lighter soils in the south part early April. Sowings on heavier soils further up north continued slowly during April and then more intensively first days in May. Soils are now rather dry and both winter and spring grains Around Lake of Mälaren: Full swing seeding this week. About 80% of the spring acreage has been seeded (40% one week ago) and expect seeding to be completed in one week time. Drilling much later than last year and maybe also somewhat later than normal. -160-140 -120-100 -80-60 -40-20 0 20 40 [ /ha] Malting barley varieties 2016: Propino 38%, Irina 23%; Quench 14%, Sanette 6% Tipple 5 %, Planet 2% New test varieties: Soulmate; Bente Makof, Catriona and Brioni for Enzyme malt Contribution Margin for farmers and different crops in Sweden:
Finland Weather The warmth came to Finland at the 1 st of May. For over 10 days we have enjoyed summer weather with warm days over 20 degrees. Nights are still cold. The warm weather speed up the drying of the soil and gave a good start for the growing season which was already little bit behind because of the wet and cold April. Rains are forecasted for the mid of the month. In some areas they are already wished for because of the dryness of the soil. Crops The sowings started in the beginning of May, almost at the same time in the whole country expect for the most northern areas. The sowings are at the normal schedule at the moment thanks to the perfect conditions. In the main grain growing areas app. 50 % of the sowings is done and proceeding very quickly at the moment. Most of the sowings in main malting barley growing area will be ready this week before the rains forecasted till the end of week are starting. Rains will cut the sowings for the while but will give the desired moisture for the sprouting. Maltsters are having a good coverage of crop 15. Farmers have been more reluctant to fix the new crop contracts because of the low price level. Problems in economics of the farming business have influenced the sowing areas of the grains and also for farming input purchases. Reduction to the malting growing area is expected, we ll see the results after the sowing season. Weather for next 10 days, Lahti Malt House area
Lithuania Weather: Spring came early and sowings has started on 5 th of April, weather did not allow to sow smoothly, because of a cold and wet period in the middle of April and soils became to wet mostly in all regions and the ones who missed the opportunity to sow early finished their sowings in the end of April or first week in May. Crops: Winter crops are looking in quite good shape, only some resowings in South of Lithuania were needed. Warm temperatures and rains are favorable for crops in May. Both winter and summer crops development is good. Bad economics in milk sector can increase cereals acreage. Spring barley and malting barley acreage expected to be in 5 years average. With lower grain prices farmers do not want to invest a lot in agrochemicals this year. Development wise malting barley is in a normal situation. Malting barley varieties: Share of varieties for crop 2016: Propino 43%, Grace 17%, Tipple 12%, Quench 6%, Sanette 6 %, Kangoo 6 %, Avalon 6 %, Others 4%. New varieties on tests: Planet, Soulmate, Irina. Acreage in Lithuania (1000ha) 900,0 800,0 700,0 600,0 500,0 400,0 300,0 200,0 100,0 0,0 2011 2012 2013 2014 2015 2016 est