Prices for barley in 2003/04 developed in a particular way. The deficit of feed grains in the EU led to extremely firm markets for feed barley. There was more than enough malting barley in the market, and at certain moments the premium for it almost disappeared. Large quantities of good quality barley were sold to the feed sector. Since a few months feed markets have become weaker after large corn and sorghum imports as well as wheat, rye and barley sales from intervention. Also good new crop prospects weighed on the market. Prices of crop 2004 barley have developed in the usual manner: feed barley close to intervention price levels, and malting barley at a premium established by supply and demand. Experience has shown, however, that excessive premiums cannot be sustained for long (2nd class barley can also be malted).

Quotes for world feed barley markets are US $ 156 FOB EU seaport in May, new crop US $ 135 in September. The intervention price is the bottom of the market, and $ prices depend on the US $ / EUR exchange rate.

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