29 August, 2017

World: Maltsters and brewers must adjust to a difficult barley year

Maltsters and brewers must adjust to a difficult barley year. High price levels will upset shorts. There will be brewers who cannot comply with their budget limits, H. M. Gauger GmbH analysts warned in their August report.

Price pressure on maltsters will be one consequence. Relaxed specifications for barley and malt will enlarge the total volume in the market and limit the price advance. Winter barley and formerly undesired varieties will increase their market share. Malting barley from Eastern Europe may find outlets in the west, the analysts forecast.

Based on present barley markets, EU malt for delivery in 2018 should cost EUR 370,-/380,- ex malthouse equal to EUR 410,-/420,- FOB in bulk in container. That is not necessarily the top of the market yet, it is reported.

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