Spring Linseed Update:
The spring linseed market is currently over supplied and thus merchants on the whole are offering relatively modest terms for new crop - especially Brown linseed as it has an industrial and animal feed use only. Yellow linseed is destined for human consumption and is not widely grown throughout Europe. Quality standards are tougher and yield poorer. Fixed contracts are available for this type, but you can imagine due to excessive demand, fixed contracts hardly 'sparkle'.
There is however light at the tunnel end - one company with a significant feed end use continue to offer BROWN linseed contracts. Fixed price in part and better than average quality standards, being on the whole more achievable and thus more likely that contract values are maintained, right down to the day the cheque arrives in the post. Deliveries occur on a load by load basis rather than by the boat load, thus enabling farms to be cleared at short notice where necessary. Some domestic use also achievable.
New terms:
50% of the contract price: a minimum £350 - maximum £400/t (linseed market crushing price).
50% of the contract price: ex farm crushing price oilseed rape (relative to HGCA delivered) + premium of 15% (worth circa £400/t at current crushing values). Note there is no direct relationship between linseed values and oilseed rape. Contract is for produce from area sown, not specific tonnage.
Quality Standards:
Moisture: Basis 9%, max 10% though end user flexible up to 10.5%
Admixture: Basis 2%, max 4% though end user flexible up to 5%
Oil: min 38%, min. 54% ALA
Growers must be members of an Assurance Scheme
Buy back contracts subject to availability. Seed available for three varieties. Specific to crops in England up to South of York and excludes Cornwall, all other areas by special agreement (due to haulage distances).
To take up this opportunity email your enquiry to info@farming4profit.co.uk or telephone Stuart on 07968 309123.
Monday, 13 February 2012
Monday, 6 February 2012
Combinable Cropping Opportunities February 2012
More detail available at info@farming4profit.co.uk
Spring Wheat - ZIRCON White Wheat - £25/t over Feed Wheat - minimum 130 hagberg, Zero Protein. Minimum 225 Hagberg, 11% Protein = £30/t premium. HGCA RL 2012.
Spring OSR - £460/t fixed Price HEAR oilseed rape. 'Act of God' contract with no tonnage commitment required. 50 metre isolation required from any other spring rape crop. Storage not required. Merchant will store on grower's behalf, though charges may apply.
Spring OSR - Hybrid Spring OSR seed production - gross margin opportunity in region of £1200/ha after costs. Virgin or ten year clear land required.
White & Red Millet - ideal for very light land, sandy soils or soils with minimal organic %. Low input, minimal nitrogen requirement. Remarkable crop for marginal or out-lying locations where distant tractor-work would otherwise be required. Values of £300/t available.
White GREGOR Peas - market opportunity of £35/t over feed peas 2012 harvest. NO BLEACHING CLAUSE. Highest yielding variety on PGRO list. 10% to 28% higher yielding than marrowfat varieties.
Brown Linseed - two varieties - 3 way split contract - fixed price (£340) / premium over osr crushing (£25)/ market price (anticipated at £320+/-)
It is generally recognised that there is minimal spring cropping land available and while some drills were seen first week February these were likely to be planting the remnants of winter wheat seed before growers close cereal plantings and move on to root and pulse planting mid March onwards. Conversely on the lighter soils some spring barley drilling may have already taken place mid December, with minimal activity since. The colder sandy soils will require a degree of warmth before growers re-start drilling barley, peas and other crops not being sown before soil temperatures really improve late February / early March.
Spring Wheat - ZIRCON White Wheat - £25/t over Feed Wheat - minimum 130 hagberg, Zero Protein. Minimum 225 Hagberg, 11% Protein = £30/t premium. HGCA RL 2012.
Spring OSR - £460/t fixed Price HEAR oilseed rape. 'Act of God' contract with no tonnage commitment required. 50 metre isolation required from any other spring rape crop. Storage not required. Merchant will store on grower's behalf, though charges may apply.
Spring OSR - Hybrid Spring OSR seed production - gross margin opportunity in region of £1200/ha after costs. Virgin or ten year clear land required.
White & Red Millet - ideal for very light land, sandy soils or soils with minimal organic %. Low input, minimal nitrogen requirement. Remarkable crop for marginal or out-lying locations where distant tractor-work would otherwise be required. Values of £300/t available.
White GREGOR Peas - market opportunity of £35/t over feed peas 2012 harvest. NO BLEACHING CLAUSE. Highest yielding variety on PGRO list. 10% to 28% higher yielding than marrowfat varieties.
Brown Linseed - two varieties - 3 way split contract - fixed price (£340) / premium over osr crushing (£25)/ market price (anticipated at £320+/-)
It is generally recognised that there is minimal spring cropping land available and while some drills were seen first week February these were likely to be planting the remnants of winter wheat seed before growers close cereal plantings and move on to root and pulse planting mid March onwards. Conversely on the lighter soils some spring barley drilling may have already taken place mid December, with minimal activity since. The colder sandy soils will require a degree of warmth before growers re-start drilling barley, peas and other crops not being sown before soil temperatures really improve late February / early March.
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