World: Analysts expect more upside risk for malting barley prices
The direction for global malting barley remains higher and higher with France leading the way as it approaches Canadian price levels, RMI Analytics said in their latest report.
End users are pressing to gain barley coverage in a tight market adding to the upward market pressure.
Malting barley premiums over feed continue to widen as the market tries to hold all possible barley for malting purposes.
Canadas malting barley price is higher this week, mainly to stay ahead of rising French prices, as both markets are rationing demand due to limited supply.
Argentina is gaining importance on the world stage as overall malting barley availability dwindles.
Despite holding its position as the worlds most competitive source of barley (FOB basis), Australian prices there are moving higher.
The market is searching for a top, and so far without a clear sign of forming and until this occurs, we should expect more upside risk, the analysts said.