World: Malting barley of correct quality in short supply this year

Malting barley of correct quality is in short supply this year, H. M. Gauger GmbH reported earlier in September.

Poor crops in parts of Europe, small crops in North America, anticipated much smaller crops than last year in South America and Australia result in a deficit – on paper. As crops in Canada, in northern Europe (partial) and the southern hemisphere are not harvested yet, an S/D balance can only be speculative, but nevertheless a danger sign, H. M. Gauger GmbH experts said.

The analysts see surpluses of 500,000 tonnes of winter barley from the EU, 500,000 tonnes of malting barley from Canada and hopefully 2.5 mln tonnes of malting and FAQ barley from Australia, for a total of 3.5 mln tonnes.

On the deficit side there is China with 3.7 mln tonnes, other Asia 0.25 mln, Russia, Turkey, North and South Africa combined 0.25 mln and most likely South/Central America 0.5 mln tonnes, totally 4.7 mln tonnes. In practice, the deficit is, of course, less than 1.2 mln tonnes, because overlapping crop years in both halves of the world make it possible to “borrow” barley from future crops. However, relaxed contract parameters, usage of marginal varieties, increased use of adjuncts, purchase of malt instead of barley, will also come into play.

World markets prices have become firmer, and the trend may continue, the analysts said.