World: Barley supply situation becoming increasingly more comfortable

The world’s barley supply situation is becoming increasingly more comfortable, and RMI Analytics’ global crop’25 forecast is up by 0.8 mln tonnes to 145 mln.

The increase in production is entirely coming from Europe, offset by small decreases in Canada and Russia. Spain has a very good crop outcome, along with good results in France, and Germany for winter barley. Further, the French spring barley harvest, which is nearly complete, is delivering suitable quality, and with yields slightly better than expectations. Looking ahead, the prospects in Denmark and Sweden are good, and the UK (including Scotland) is expected to deliver an average overall crop result with malting quality that is fully manageable.

While further results are awaited in Europe, the early results achieved provide a high degree of stability to malting barley supply. While considerable time still exists before the outcomes in Canada, Australia, and Argentina are known, crop prospects remain positive.

Changes in world barley prices are mixed as feed barley gains strength from the delays in Black Sea harvest and logistics, while malting barley prices are mostly steady. European spring barley prices are weaker but the impact in USD is neutral. Conditions are improved in Australia and Canada but price changes are limited. Argentina planting of Crop’25 continues to be delayed by wet weather. In most cases, the interest of farmers to sell barley is limited, as current price levels
are not viewed as attractive.