EU: Supply and demand of malt are not in balance and malt prices are rising as a result

After bad losses in the past years maltsters cannot afford any more to speculate on barley prices, but they cover their sales immediately, market analysts commented.

Malting margins are min. EUR 100,- per ton of malt, the trend goes to higher levels. It is due to the higher cost of energy, transport and other factors, but also due to the absolute necessity to show profits to shareholders and bankers after the bad years.

Supply and demand of malt in the EU are not in balance, since the accession of Romania and Bulgaria there is a deficit of a few hundred thousand tons. Malt exports, which will drop by 350,000 tonnes in 2006/07, will rise again, as the world balance shows a deficit as well. Resulting malt prices are EUR 350,-/370,- per ton ex works.

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .