World: Barley markets dull since months as China, Saudi Arabia reduce purchases

Barley markets had been dull since months. In past years Saudi Arabian tenders and well publicized Chinese purchases of malting barley kept markets alive. This year purchases by these two countries will be well down, China may import 6.0 -7.0 mln tonnes vs. an USDA estimate of 9.5 mln, and the forecast for Saudi Arabia is 4.7 mln tonnes vs. more than 7 mln in 2019/20, H. M. Gauger GmbH said in their November report.

Iran and Turkey import larger quantities than in the past, but mainly from its neighbours Russia and Kazakhstan.

Prices should incite a much larger feed use of barley. But only in the core EU feed industry countries barley holds a great price advantage vs. feed wheat (+ �30) and maize (+ �40), while Black Sea and South American markets offer all feed grain at similar levels.

The smaller world corn crop may finally shift more barley into feed mixes. FEFAC, the EU feed industry association, estimates the EU mixed feed production 3.5% down in 2022.