North America: Barley harvest wrapped up with generally positive results

North America’s barley harvest is wrapped up, and the result is generally positive (certainly following 2021 disaster), RMI Analytics reported earlier this month.

The experts’ estimate for Canada is 9.66 mln tonnes (StatsCan 9.43 mln), and the US at 3.54 mln tonnes (USDA 3.44 mln).

There is some variability in crop quality (e.g. higher proteins in southern Canada but, lower when moving further north). There was a wide range of weather experienced during the growing season but still the selection rate potential from crop 2022 exceeds the longer-term average (which was much needed). The same holds true in the USA, where a range of quality exists but generally there is sufficient malting barley available. Early malting results confirm good germination with normal modification.

Feed demand is reduced slightly due to higher prices for barley and exports are down slightly. Ending stocks will remain low due to the empty pipeline following the 2021 drought situation and the need for a re-filling of the supply chain.

The crop outcome ends the import model from crop 2021 but has not led to lower prices. Grain companies and maltsters are struggling to buy barley, with the feed complex well supported. Farmers are holding out for malting barley selection.

Indications are China may reduce malting barley purchases in pursuit of cheaper FAQ and feed barley alternatives, which could weigh on total export volumes.

Imported US corn and oats are coming back into feeding rations, as feed barley prices have advanced higher after weakness during harvest.