Europe: Supply of barley for this crop cycle showing tight balance sheet

With barley production estimated at 58.9 mln tonnes for the EU-27 and UK together, the supply of barley for this crop cycle is mostly known and the result is a tight balance sheet, RMI Analytics said in their latest report published on December 17.

With ongoing export demand from China, the Middle East, and likely further imports in North America the barley situation is expected to remain very much on edge until new crop 2022.

From weather perspective, good rainfall and moderate temperatures are maintaining good prospects for crop 2022 development.

The lower French milling wheat futures are allowing malting barley premiums to rebound with those for spring barley back to EUR50-55 per tonne and those for winter varieties at EUR35-40 per tonne, an important price signal for farmers in light of strong feed barley demand, led by China where 12 cargoes were reportedly traded recently.

In Russia, export tariffs are reducing export levels (and holding barley back for domestic consumption). Barley area for new crop will be limited by high wheat plantings.

For Ukraine, Chinese demand remains in the market adding to pricing new crop opportunities for farmers.

The wider Europe barley market remains critical to supply the deficit areas globally, which places increased significance on attaining a good crop 2022 which currently looks good for winter barley.

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