World: Global barley crop forecast reduced by 1.3 mln tonnes

With minor production reductions in Australia, Canada, Russia and EU27&UK only offset by a small increase in Ukraine, RMI Analytics� global barley production is reduced by 1.3 mln tonnes to 142.4 mln tonnes, the industry observers said in their latest report.

This results in crop�24 production falling below the crop�23 level and tightens further the global barley S&D. Under this reduced barley supply, there is an expected corresponding reduction in feed demand, while malting barley processing demand is expected to drop slightly (due to weak demand). A larger global corn crop more than compensates for a reduced barley supply from a feed grain point of view.

Global barley ending stocks are at the lowest level in eleven years, yet the world market appears well covered, the analysts said.

A year of weather extremes, from very wet conditions in Europe to excessive heat and dryness in Canada, contributed to a tightening supply situation. Farmers remain unwilling sellers as margins are suffering, and this could have a major influence on crop�25 planting intentions.