US maltsters have cut back on the number of acres of malting barley they will contract for this year and what will be contracted for will be at a lower price than what was issued last year, Farm and Ranch Guide reported on March 2.
That’s the word from CHS Sunprairie grain merchandiser Kayla Burkhart. They contract acres for Rahr Malting in the north central region of North Dakota and the amount of acres contracted was cut significantly.
“Our six-row barley malting contracts were cut in half and our two-row contracts were cut by 70 percent,” Burkhart said. “The reason is that we had such great crops last year, which resulted in a big supply so they don’t have to contract a bunch for this year.”
The average price paid for the malting barley contracts by Rahr was around $4.50 a bushel, which pencils out on the favorable side considering the current prices of other commodities.
“When you are talking a current price of $4.20 a bushel for spring wheat, the price being offered for the barley contracts is phenomenal,” she said.
A reflection of the current situation of adequate malting barley supplies is the lack of a higher cash bid price for malting barley. emalt.com
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