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CASTLE MALTING NEWS in partnership with Greek
19 March, 2022

Barley news Argentina: Good barley crop outcome provides valuable supply for South America and rest of the world

Argentina’s good crop 2021 outcome, at 5.2 mln tonnes, provides valuable barley supply for South America and an expanding global market, given the events unfolding in Ukraine, RMI Analytics said in their early March report.

Exports are expected to essentially leave little carry-out from crop 2021. Looking ahead to crop 2022, the fierce competition from wheat prices limits the possibility for expansion of the barley planted area. As a result, RMI Analytics’ projection is for a similar crop output in crop 2022 as in 2021.

Farmer prices are significantly higher but input costs are also up and influencing farmer planting decisions. As seen in 2021, farmers continue to have a very favourable view toward feed barley, which presents a risk to brewers and maltsters to maintain malting barley production.

Not surprisingly, buying interest for FAQ cargoes (e.g. China) has returned in fast and a considerable manner. A lack of liquidity and relatively small volumes left to trade are limiting the ability to transact further business. Farmer selling is nonexistent.

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