World: Malting barley prices are lower succumbing to pressure from wheat complex

World malting barley prices are lower across the board, as barley prices have succumbed to the current pressures from the wheat complex, RMI Analytics report.

The fundamentals for global barley remain rather tight, especially for malting barley, but certainly ample for 2023. Looking ahead to crop 2023, however, the poorer results in the southern hemisphere mean we start again with a low carry-out for malting barley. Evidence supporting this view is the wide malting premium in may key regions. In addition, the world’s corn supply is much lower this year, and supports the underlying feed grain prices, including feed barley, creating limited downside price potential.

Malting barley prices have resumed their downtrend (following a brief interruption) from the peak prices in June 2022. However, prices remain well above the 5-year average with liquidity remaining a challenge across many markets (e.g. Canada, Argentina).

The Ukraine grain corridor extension into February 2023 sparked a wheat sell-off which has brought barley along with it but we can expect another round of volatility when the extension ends, the analysts said.

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