World: Premium of malting over feed barley supported by large demand
Australia lost the Chinese market for its malting barley but gained footholds in Mexico and South America. It also sold malting barley to Canada following the crop calamity in North America, H. M. Gauger GmbH said in their June report.
Argentina concentrates on FAQ barley business to China and malting barley sales to its South American neighbours. The export trade expects 2.6 -2.8 mln tonnes of new crop barley to be sold to China in 2022/23. The barley acreage will be expanded from 1.150 to 1.265 mln ha, the crop is anticipated at 5.4 mln tonnes, exports at 2.6 – 2.8 mln tonnes.
Canada (like the U.S. north) has a weather problem again. Barley seeding is still impaired in Manitoba and eastern Saskatchewan, and the drought continues in the west, particularly in southern Alberta. Canadian plantings and production estimates are 3.03 mln ha and 9.3 mln tonnes and may be too optimistic. Canada managed miraculously to export 2.7 mln tonnes to China (both malting and feed barley). After the frightening experience of last year most shippers have not dared to sell any new crop barley yet. 2-3 cargoes have been sold for export so far, while the optimistic export forecast for 2022/23 is 3.05 mln tonnes.
Crop prospects in France are alright for winter, less good for spring barley. There will be a sufficient export surplus of 6rw and 2rs malting barley for its neighbours in the EU and for markets abroad, especially China, the Gauger analysts said.
The premium of malting above feed barley is supported by large demand, in almost all countries of the northern hemisphere maltsters are short of old crop barley. New crop malting barley demand will be for 13 months instead of one year; there is a special demand for early germinating barley. Summer interruptions of malt production seem possible.
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