Climatical effects

August, 24th, 2011 - Whereas April and May were recorded as the driest and one of the hottest periods ever, it is likely that July and especially August will go in the books as one of the wettest periods ever.

The result of all this is that the EU27 grain crop is faced with both yield - and quality losses.

With regard to malting barley, there is still some 30-40% in the fields in Scandinavia. Out of the 60-70% harvested, some 30% was cut before the rains, but it is unclear at this stage whether the additional 30-40% will actually qualify as malting barley or should be disposed off as feed.

All main malting barley producers, France, UK, Germany and Scandinavia, were hit by these rains, causing serious disruptions to harvest activities.

As a result, the malting barley S&D for the EU27 has moved from a small surplus into a deficit. It will require some time to determine the actual size of this deficit, but it is safe to state that compromises to quality will need to be made in order to balance the S&D.

Prices remained at high levels and showed a slight upward tendency. It appears however, that a combination of lack of demand and the fall on the stock markets, kept a lit on prices.

In the next 2-3 weeks the market should be able to form an opinion on the actual outcome of the crops. This will determine the price direction for the period to come.

 

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The above information is for general purposes only. Any reliance you place on the given information is therefore strictly at your own risk.

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