World: Barley production forecast slightly down on Argentina concerns

Global barley production forecast for 2022/23 is down slightly at 149.9 mln tonnes (versus 150.4 mln earlier in November), and the drop is mainly due to the difficult situation in Argentina with severe drought and frost events, RMI Analytics said in their latest report.

A slightly smaller barley production is not so worrisome by itself, but a looming problem lies in the larger reduction in malting barley selections from the southern hemisphere barley crops. Quality is being impacted in Argentina by extreme dryness, and Australia is dealing with excessive rains hampering harvest activity. Early conclusions point to crop 2022 requiring an immense amount of time and effort in managing barley quality variability.

Global barley prices are mixed, with a gradual widening of the spread between feed and malting barley, which in RMI Analytics’ view seems a bit slow in reacting, given the crop issues faced in both Argentina and Australia.

In France, prices between crop 2022 and 2023 are narrowing, a result of increased activity in 2023 business concluded by brewers and maltsters.

Malting barley prices are well supported by market conditions and disconnecting from wheat.

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