World: Barley crop prospects good in Europe, Argentina, and Australia

Barley crop prospects are very good in East and West Europe, quite promising in Argentina and Australia, but extremely poor in the Canadian Prairies and the northern U.S. barley states, where drought, heat and strong winds threaten to reduce production and damage qualities, H. M. Gauger GmbH analysts said in their July report.

Canada has sold approximately 1.6 � 2.0 mln tonnes of new crop barley to China, but may drop out of world markets for the rest of the crop year. At least for the time being, very firm price levels of the Alberta feed market prevent competitive export offers of Canadian barley.

China has covered 5.0 � 5.5 mln tonnes of new crop barley so far, and must now rely on three sellers � France, Ukraine, and Argentina - for the balance of its needs. They have been absent from markets since April.

Feed barley supplies look ample at present, but will find good demand as well.

Malting barley supplies in Europe may turn out tight because of good feed demand and insufficient malting premiums.

Import demand (China, Brazil, Mexico etc.) is particularly large with beer sales booming at the end (?) of the corona crisis.