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Saxon Organic

The organic cereals market

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Market update by Alastair Garner, Saxon agriculture

January 2016

To kick Organics off in 2016 UK organic feed barley is still very active during a time of fairly slow cereal trade. It is likely this demand will continue through to Easter at least, which represents a superb opportunity for our farmers to get grain moving.Growers are holding organic barley they believe will make malting but with many samples rejected by maltsters, it is likely much of this will come to the feed market. We are buyers of high quality organic malting varieties, samples should be sent to the Saxon lab for approval. Please call to discuss available positions as homes will fill quickly.

Organic feed wheat doesn't quite show the same promise, there's no shortage of domestic grain available - it is vital we know where stocks lie across the country for when demand does arise. The strong demand for high quality UK organic milling varieties continues. If there are samples out there we haven't seen at the Saxon lab, get them sent to us ASAP because there are generous premiums available. Prices on request.
On organic proteins, there is still significant demand for organic beans but very little available on farm. If there are any full loads, in the right locations - we are buyers but imported will feature to supplement requirement.

Our Feb/Mar ex farm organic price indications:
Organic feed wheat £180, milling £POA, feed barley £185, malting £195, beans & peas £290. Alistair Garner Saxon Organic market

December 2015

The organic feed wheat market at the end of 2015 remains sluggish, with little reason for consumers to purchase forward given ample supplies, drifting prices and mild weather. Our price indication for Jan/Feb organic feed wheat is £185 ex farm. On a more promising note, we still have homes for organic feed barley in January although these are filling quickly.

Our Jan/Feb price indication for organic feed barley is £185 ex farm.
Those with organic cereals to sell throughout the rest of winter and spring should update us with availability as soon as possible to ensure the best chance of marketing your grain. There is still good demand for organic malting barley with the premium at £20 over feed, and millers require quality spec wheat - premiums on request.

Organic proteins have been particularly active throughout autumn and it is likely demand will continue into 2016. Imported supply chains are still disrupted with organic sunflower cake a no-show and other proteins in short supply. The premium for domestic organic beans and peas remains generous with our Dec/Jan price indication at £290 ex farm. Sellers should be aware there is significant downside potential when imported proteins come back on stream.

Our Dec-Feb ex farm organic price indications:
Organic feed wheat £185, milling £POA, feed barley £185, malting £205, beans & peas £290.

November 2015

As we reach November organic cereal markets remain under pressure, with over adequate supply and limited buying activity. Buyers are warming up with the onset of cooler weather but demand is not consistent.

UK milling and malting varieties that make the grade are hard to come by. Protein, gluten quality and falling number results are disappointing meaning much more feed is coming to market. Premiums remain generous but we must see samples first, quotes on request.

Domestic organic proteins will remain popular although they are in sufficient supply with imports supplementing requirement. Our indication for both organic beans and peas is £300 ex farm, although this significant premium is likely to slip when other protein sources arrive in the UK.

Our Nov/Dec ex farm feed value indications:
Organic feed wheat £185, milling £POA, feed barley £180, malting £208, beans £300.

October 2015

New crop organic cereal markets have seen little action over the harvest period. Feed values have drifted towards similar lows of last year, awaiting winter demand from feed compounders.

Quality for premium crops has been mixed. Organic milling wheat samples have struggled to crest 10% protein, whilst there have been significant quantities of skinned grains in malting barley samples. Therefore generous premiums are available for organic grains that achieve milling and malting grades.

Organic proteins have been in good demand throughout 2015 after disruptions to import supply chains. Consumers have been purchasing organic feed beans and peas in good quantities although there has been limited domestic supply to meet this requirement.
This demand will continue until concerns over imported protein availability subside.
Sellers of organic cereals and proteins should contact Saxon Organic on 01284 764915 to take advantage of our supply opportunities.

Current ex farm indications for Nov/Dec collection as follows:
Feed wheat £190, Milling £POA, Feed Barley £182, Malting £210, Beans £295

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