North America: Barley production forecast stable this month
Barley production levels in Canada and the US remain unchanged at 6.8 mln tonnes and 2.4 mln tonnes respectively, RMI Analytics said in their latest report.
The supply and demand balance in both countries is tight, as end users fight for every tonne of malting barley (versus feed). Imports from Denmark are reported and Australian are being considered as well.
Reports show a large proportion of barley has been delivered into the grain companies’ network, With most export contracts washed out, this barley should eventually find its way into domestic maltings.
The prospects for crop 2022 remain a concern due to the ongoing subsoil deficit moisture situation. Although there were some rainfalls in Idaho and North Dakota, there remain large portions of Canada and Montana which are extremely dry. Above average rainfall this winter and in early 2022 is essential to breaking the drought cycle.
Agricultural input costs have sky-rocketed and are heavily influencing crop 2022 planting decisions. In 2022, barley should compete strongly versus other crops on the basis of lower input requirements and, as a result, an increase in planted barley area over the crop 2021 area is expected. With a slightly higher planted barley area, barley production should return to about 11 mln tonnes, the analysts said.
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