Canada: Barley acreage seen 5% down this year – RMI Analytics
Much needed moisture relief arrived during the first two weeks of May in Alberta. Some of the moisture last week even arrived in the form of snow, which is welcomed but does push back planting due to the cool and wet conditions, RMI Analytics report.
The analysts’ Canada barley acreage estimate of -5% is more positive than StatsCan (-10%), and with normal yields their estimate remains at 9.7 mln tonnes in crop 2022.
A rebound in production will partially fix the very tight ending stock situation in Canada. Exports will recover slightly as well, RMI Analytics said.
As farmers turn their focus to planting 2022 crops, there is clearly a lack of selling interest. The 2021 drought remains a clear memory and contributes to concern about selling too early. Given the improved moisture conditions and once planting is completed, there is potential for farmers to start showing greater willingness to sell barley. Maltsters must now wait, as a push to contract only raises prices without much actual contracting being realized.
For crop 2022, prices are slightly but at these levels demand has stepped away as buying ideas are much lower, the analysts said. Feed barley trades were confirmed earlier, which indicates demand still exists. For feed barley, it is now trading below higher priced US corn, bringing demand back to barley. Some delays in US corn planting due to wet conditions are a factor.
Înapoi
(libra 0.7109 sec.)