Canada: Barley markets extremely firm

Canadian barley markets are extremely firm. Production is up from 7 to 9.5 mln tonnes, forecast domestic feed demand up from 4.3 to 6.0 mln, H. M. Gauger GmbH said in their November report.

Since early October the Lethbridge feed barley market has risen from US$315 to almost US$375 per tonne, which is much higher than during last very poor crop year.

As the campaign started with barley stocks close to zero, supply channels and stocks had to be rebuilt. Farmers were not sellers, the overall political and economic world situation favoured retention from markets. Weather prospects for the winter are unfavourable.

All of a sudden the Chinese entered the market and booked an estimated 1.3 mln tonnes of FAQ/feed barley. Estimates are that the Chinese need another 2 mln tonnes for the present crop year. Sales of French and Argentinean barley stutter, poor quality in France an poor crop prospects in Argentina are seen as a support or the Canadian market.

The harvest had produced much quality barley, and reports are that maltsters in Canada and the U.S. are well covered for the winter months.