World: Malt markets affected by freight rate increase and currency exchange rates fluctuations

Malt markets are affected by the freight rate increase from EU ports to Southeast and Far East Asia, H. M. Gauger GmbH said in their August report.

Freight rates have come down from their top last month, but are still high enough to give Chinese and Australian maltsters a price advantage in Southeast Asia.

The firmer euro or weaker US dollar are another obstacle for EU malt exports. During the month the euro value increased by 4%, also against the Australian and Canadian dollar.

By next year the new capacities in Belgium, the Netherlands, Germany will come on stream. The Vietnam malthouse is operational since a year. In recent times the world malting industry had fared quite well. A first impression is that there will be an overcapacity in the world, but craft beer continues to absorb large quantities of malt, and the beer output in Africa and Asia rises fast.