EU & UK: Barley prices see some movement due to increasing concern about dryness in France
European barley prices have undergone some significant movement over the past two weeks, as increasing market concern about dryness in France left the market with limited selling interest. As much-need rain arrived, sellers are turning up again but buyers are stepping away, RMI Analytics reported.
Paris wheat futures have continued a long-term downtrend after a brief rally higher but are now turning bearish again with arrival of rain this week across much of France. If there is any open demand in 2023, it relates to the transition period between crop years (July-September 2023), but otherwise crop 2022 activity is mostly finished and prices are mostly indicative. For crop 2023, a sizeable quantity of feed barley traded to China for September-October 2023 at reported prices of USD325-330/tonne CNF China, with a large proportion likely to be sourced from France.
The UK and Denmark price movements are down and in alignment with French values. The Danish crop result in 2022, with low proteins, created a discount for Denmark over the UK and this discount continues into crop 2023 as the trade appears to be working to retain or regain market share in continental and export trade, making Denmark the low price European origin.
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