EU & UK: Barley markets still re-starting following holiday break
EU barley markets are still re-starting following the holiday break, and China is heading toward their New Year celebrations which leaves a quiet trade at the moment, RMI Analytics reported earlier in January.
There remains nevertheless an underlying bearish tone in the market, driven by weaker European wheat prices. Price volatility has returned very quickly to the New Year’s opening of trade, adding to the bearishness.
On the back of weaker wheat futures, French malting barley prices are lower, particularly in crop 2022 as maltsters are mainly covered, and China has focused on buying feed/FAQ barley. This is pushing crop 2022 malting barley prices lower, while crop 2023 prices are down to a lesser degree and now a premium over crop 2022. When considering carry costs, there is very little price spread between crops 2023 and 2023. The Mosel/Creil price spread has narrowed.
In a similar fashion to France, the UK and Danish markets are down sharply since mid-December but with limited activity during the first couple of weeks in January. Maltsters still have open demand as evidenced by small trades and requests for offers. The small premium of UK over Danish is expected to continue until crop 2023.
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