EU & UK: Malting barley prices weaker under the influence of weaker wheat futures

EU and UK malting barley prices are weaker, influenced to a large degree by weakness in wheat futures, and the ongoing weak demand picture, RMI Analytics said in their latest report.

Barley exports from the EU-27 are down around 39% versus a year ago, leaving a sizeable residual stock, and despite the disappointing winter barley crop result. From the RMI Predictive Barley Price Model, Fair Value for French 2-row malting barley prices is sideways to higher, but with some volatility over the next 3-4 months. This aligns with the tighter barley S&D, and a view of a seasonal bottom forming.

Both UK and Denmark malting barley prices are following French prices downward, as ample inventories of malting and feed barley persist. Domestic maltsters remain by all appearances well covered, and feed demand is limited as buyers are in a ‘just in time’ purchasing mode, and this could ultimately trigger feed barley being exported. In Denmark and Sweden, the crop-changeover to the highly anticipated (and needed) crop’24 has now advanced to a conclusion with good results reported.