Mercosur: Argentina’s crop could just match the malting barley demand of South America - analysts

Brazil has harvested 240-275,000 tonnes of malting barley, approximately half of which in Parana and the other half in Rio Grande do Sul, H. M. Gauger GmbH reported earlier this month.

In Uruguay, crop estimates run from 360 to 400,000 tonnes. In a wide area ranging from southern Brazil through Uruguay to Northern Argentina, the crops were affected by heavy rains before and during harvest. Therefore the final import demand cannot be established yet, but it will be from 550 to 650,000 tonnes for Brazil and up to 100,000 tonnes for Uruguay.

Argentina expects a good crop in South Buenos Aires, with yields above 4.0 tonnes/ha, albeit low proteins. Only 15 - 20% have been combined so far in the Buenos Aires province. Total crop of the country is forecast to be 3.0 mln tonnes. Domestic demand is 1.2 mln tonnes. It leaves a theoretical surplus of 1.8 mln tonnes, of which 4-500,000 tonnes feed barley have been sold for export. In case of a high malting selection and no more feed barley exports, the remaining surplus would just match the malting barley demand of South America (incl. the Pacific countries). In any case, the balance will be very tight, the analysts said.

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