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CASTLE MALTING NEWS in partnership with www.e-malt.com Ukrainean
22 May, 2021

Barley news World: Market situation of barley remains special

Feed wheat has replaced corn in feed mixtures, as it is still available at lower prices than corn. Also barley feeding has increased, but not to the same extent as wheat, H. M. Gauger GmbH reported earlier in May.

The market situation of barley remains special. Four countries – Argentina, Canada, France, and Ukraine - are suppliers to China, their better price levels make them uncompetitive in other markets most of the time.

Argentina and Canada have much increased their barley acres, but crops in France and Ukraine will be lower than last year. It leaves Australia, Russia and the EU excl. France to supply the importing countries of Asia, Africa and Latin America.

Australia, being barred from sales to China, has a very competitive position in all other Asian markets. The Chinese ban of Australian barley is brought forward to the courts of the WTO, any opening of Australian shipments to China would change the world barley markets dramatically, but is unlikely in the foreseeable future.

At the end of the corona pandemic beer consumption is expected to reach the levels of pre-endemic times. Smaller acreages and a late und partly unfavourable growing season threaten very tight malting barley supplies in the EU. Worldwide China's activities may have an effect on malt barley markets. The largest risk is the disappearance of quality barley into the feed sector, malt premiums are totally unrewarding, and feed barley markets will be active, while brewers/maltsters seem to be too hesitant once again this year.


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