Argentina: Malting-feed barley spread further narrows in Argentina

The main movement in Argentina’s barley prices is a further narrowing of the malting-feed barley spread, as malting barley prices (FOB and FAS) are lower, while feed barley prices are a bit firmer in alignment with the global price trend, RMI Analytics said in their early January journal.

The minor improvement in farmer liquidity is triggering new trade activity, and reported recent feed barley sales is a good sign that buyers are bringing open demand to the market, at least for feed barley. Alternatively, there is virtually zero demand for malting barley at the moment, with South American maltsters appearing to be well covered, and China being mostly absent for malting barley (and FAQ as well).

Farmers’ selling interest for malting barley is viewed as being at USD10-15/tonne higher than current bids being presented.