World: Malting barley prices continue on dramatic downward path

The temporary malting barley price increase in May, caused by dryness concerns across Europe, seems very far away as prices continue on a dramatic downward path, RMI Analytics said in their September report.

The sharp increase in the estimate for Australian barley production is the latest bearish influence on malting barley prices, with France and Argentina making moves to stay in alignment with Australian values. Canadian prices are down but to a lesser degree as a delayed harvest has reduced availability.

The massive crop forecast increase for Australia leaves China with a very abundant supply environment. The result is additional pressure on France, Argentina, and Canada to fight for any residual demand from China. Further, feed barley demand for the Middle East would remain extremely competitive as supply chases limited demand, the RMI analysts said.