The Courier Masthead
 05 September 2007   Latest News
       

 
Farmers concentrate on harvest as futures soar

THE 2007 HARVEST has been an extraordinary one in many ways, not least the background of daily rises on the commodity markets.

Yesterday the wheat futures rose again in spectacular fashion to close up £8.50 at £186.50 for November.

Confirmation that India has bought 785,000 tonnes on the world market and continuing fears about the effect of drought in Australia have driven prices to new highs.

However, a good proportion of the Scottish crop has already been sold, including much of the malting barley crop, and if there is a feeling of euphoria it is somewhat muted.

Growers are concentrating first on bringing in the crop while the good weather lasts.

Andrew Gilchrist of Scottish Agronomy has been monitoring yields and quality for his members and said yesterday, “Generally spring barley is ahead of expectation.

“The season has been unusual and seems to have made Oxbridge more sensitive to skinning. Winter wheats are more variable possibly due to blank sites on the heads.

“The final fungicide sprays on both wheat and barley did a good job. There was a little more leaf disease on wheat but it was an extreme season.”

Harvest conditions are the best for several years, according to Andrew McLaren of Wester Keillour, Methven. He has cut two-thirds of his cereal crop—Alchemy and Robigus wheat and Optic and Oxbridge spring barley.

“The barley has been coming off at around 14% moisture, with the wheat around 16-17% which will help with drying costs. Yield-wise the barley is looking fine but I’d say the wheat yield is back around 0.5 tonnes per acre.”

Peter Grewar and his father, also Peter, farm extensively in Strathmore and in the Black Isle from their base at East Ardler, Meigle, and are in the thick of the harvest.

“We have been combining wheat west of Perth and are just starting at Ardler today.

“The spring barley went smoothly and we have been pleasantly surprised by quality. Nitrogens are low and screenings are not a problem with either Decanter or Oxbridge.

“Although there has been some skinning in the Oxbridge we like the variety and it is worth persevering with.

“The barley in the Black Isle has been behind this year due to sea haars. We put another combine up there on Saturday to help out but there is still another three or four days’ cutting,” said Peter.

At Coupar Angus, East of Scotland Farmers is drying and storing 50,000 tonnes of grain on behalf of its members.

General manager Robin Barron said, “Quality is excellent and certainly better than expected given the summer weather.

“Appearance is not perfect but it is easily acceptable. Wheat bushel weights are below average but still above the minimum required.”

Over in east Angus, Robert Ramsay, West Mains of Kinblethmont, is up to date with his harvest but expects to be back among his remaining wheat by the weekend.

“We have one third of next year’s winter barley sown and all the oilseed rape. The malting spring barley was low nitrogen. Oxbridge did well, but feed variety Braemar yielded best and was a very good crop.

“It is wonderful to see prices going up but I am beginning to worry about our customers. Unless they get a price increase there might be no pigs or poultry to eat the grain.

“Maybe we should be forgetting about wheat futures and buying pork futures instead!”

John McWilliam, Haughhead, Laurencekirk, has just completed combining for the season, and said, “There is still some spring barley to cut in this area and a lot of oats, but everything has been reseasonable and better than feared.

“Our wheat is not as strong as usual and a little back on last year but all the Oxbridge barley yielded about 2.5 tonnes per acre and we will stick with it.”

Further south at Urquhart, Dunfermline, Peter Stewart was busily cutting wheat, with spring barleys due to follow within a day or two.

He said, “We are cutting wheat at 16%. The most visible difference is between first and second wheats. Last year they yielded the same but this time second wheats are a clear half a tonne an acre less.”

Allan Bowie, NFUS regional chairman, was cutting first wheat at Airdrie, Anstruther, and was also noticing a half tonne per acre improvement on the second wheats which were combined a week ago.

“The first wheats are knocking on four tonnes an acre but they took 10 to 14 days after desiccation to come around,” he said.

“The Oxbridge barley did well at 2.5 tonnes an acre but the contract price is hurting a bit! My concern now is that there must be huge pressure to allow in imports of GM feeds to satisfy demand.”

Reporting from the north-east, Bruce Ferguson of Grainfarmers said, “Whilst about 75-80% of the barley has been cut in central Scotland, it’s more like 25-35% in Aber- deenshire where some crops are only now just fit.

“After establishing well through its early stages early, the lack of sunshine slowed growth stages dramatically.”

Quality-wise it won’t be a vintage year, he added.

“Nitrogen levels are OK, but screenings are very variable—some very good but others with higher levels. There is no discernible pattern.”

South of the border, Grainfarmers trader in Wetherby Steve Atha said, “With the marked improvement in the weather holding right through to the beginning of this week, the wheat is looking like 90% done now.

“There’s just a bit to do on the big farms up on the Wolds and in Northumberland.

“Yields are variable and at best only average. There’s been such a lack of sunshine that it’s affected grain fill.”

With the wheat market soaring to ever more dizzying heights of £170/t plus, he says that it is very difficult to find anything to buy.

“With pre-harvest values at £80/£90/£100, farmers sold 30-50% of their crop pre-harvest.

“It is difficult to sell at the right premium over futures because funds and institutions are now trading wheat as a commodity. They are attracted to the volatility in the market.

“Consumers now seem to have cover pre-Christmas and UK export wheat is not competitive on the world market.

“Though the market must be due for a downward correction it is impossible to say when this will be.

“There’s nothing bearish in the market at the moment.”

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