EU: EU domestic markets of malting barley dormant since months

EU domestic markets of malting barley have been dormant since months. Analysts assume that maltsters must still cover fairly large quantities of crop 2005 barley, so far their waiting has been right, as prices declined somewhat.

Premiums above feed barley markets and intervention prices are low, with two consequences: the possible decline of malting barley prices is limited, and farmers are once again very disenchanted with their returns on malting barley sales.

A reduction of spring barley acres in Germany and Esterel barley acres in France is anticipated for 2006.

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