EU-27 & UK: Old crop barley prices weaker as maltsters and brewers seem comfortably covered

Old crop (2022) barley prices are weaker in Europe as maltsters and brewers seem comfortably covered at the moment, RMI Analytics said earlier this month.

Although trade is quiet, there is still interest being expressed which tells us there is more business still to complete.

Despite the extension to the Ukraine grain corridor, the conflict continues and from a geopolitical perspective a resolution seems far away. In addition, winter weather adds its normal logistical challenges at this time of the year. In past weeks buyers expressed interest at lower price levels, and now that prices have dropped, the analysts are wondering whether the buyers will enter the market and buy the commodity.

In France, the market is down sharply in Creil and Mosel, with the wheat market being a primary driver for a weaker tone, along with a quieter market overall. Buying interest for crop 2023 barley is narrowing the price spread to crop 2022. A similar price narrowing is taking place between winter 6-row and spring 2-row barley (e.g. Creil at EUR26/tonne 2-row spring above 6-row winter), which is still high in historical terms.

Protein constraints (<9.5%) in Denmark continue to discount prices versus the UK with crop 2023 values are down, to a lesser degree.

The UK is busy executing current trades with few new deals reported, but enquiries from buyers are steadily in the market confirming open demand.

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