While last year the timely sale of wheat after the grain harvest worked out well for Profytodsd, this year the reverse is true. Especially at the start of the new year, it was possible to take advantage of some peaks in the market. The result is not a fat pot, but it is in line with the market.
Profytodsd, agricultural supplier in Flevoland and the Northern Netherlands, announced the final additional payment price for wheat and barley in the first full week of June. For the long wheat pool, which runs from August to May, a final result of 147,50 euros net per tonne is recorded. This means a supplementary payment of 37,50 euros per tonne for affiliated growers. All pool costs have already been paid. What remains are any drying costs or a correction based on hectoliter weight.
Early pool ends lower
Profytodsd also has a short wheat pool, with a duration between harvest and Christmas. Last year the result was almost equal to the current long pool. This year, at a net 143 euros per tonne, it is 4 euros lower. This has everything to do with the low price level during that period. The long wheat pool then amounted to 141 euros per tonne. For barley the company pays 132 euros net per tonne.
Spread of 12 euros
The average market price during that period, based on the Emmeloord stock exchange listing, is 161 euros. For Profyto, costs for storage and transhipment, safekeeping and other costs are deducted from this. Despite low wheat yields in Europe, the price level started low. That changed at the beginning of October. This was the result of good exports and increased demand. At the beginning of 2017, the price stabilized due to the enormous global inventories.
Most wheat dried
Most wheat, in the working area of Profytodsd, was harvested in the second and third week of August. The moisture percentage averages 16,2 percent. This means that growers pay 2,10 euros per ton in drying costs. Per tenth of a percent moisture, above 15,5 percent, 30 cents per tonne is charged.
Hectoliter weights remained stuck around 70-72. The result of low temperatures and little sun. "We received approximately 10 percent less wheat for the same acreage," says spokesperson Frans van Egmond. 'The yields were a lot lower than we are used to. You hear that story everywhere.'
A lot of pressure on barley prices
The volume of spring barley was harvested in the same period as wheat, with an average moisture percentage of 16,3 percent. The hectoliter weights of 60 to 62 are average and therefore lower than usual. Little demand and a lot of stock put a lot of pressure on the barley market, putting pressure on the price throughout the season. The price difference with wheat is 15 to 20 euros per tonne.
The gross market price in the sales period between August and May was 144 euros. The company's barley pool also has a small volume of winter barley. All barley is sold on the feed market. Brewing barley varieties are grown, but usually do not achieve brewing quality above the rivers. Due to its small size, it is difficult to find a malting house for this.
Venom in the tail
The 2017 harvest is now looking good. Van Egmond estimates a normal harvest given the current situation. 'The expectations are better than last year. This is due to the sunny weather. Things are also looking better for barley. Even at the end, with a lot of rain during the harvest period, the hectoliter weight and therefore the chill yield can still drop significantly. For now we remain positive. For the 2017-2018 season, affiliated growers can again sell their grain via a short and long pool, or completely freely.'