North America: Concern mounting over barley crop due to hot and dry conditions

Concern is mounting regarding the US and Canadian barley crops due to hot and dry conditions and despite recent rains, RMI Analytics said in their latest report.

Barley crop ratings in Canada and the US have dropped over the past two weeks. Although the recent rains are beneficial, the crop is still undergoing stress which is a risk to final yields.

StatsCan’s report increased barley-planted area – 4% more over crop 2022, in alignment with RMI Analytics’ estimate.

In the US, the USDA crop ratings trail recent crops, except 2021.

Despite the dryness concerns, a larger area will help maintain the crop production of nearly 10 mln tonnes, the analysts believe, but this is likely the upper limit of the crop potential. Without any further rain, the crop size would then need to be reduced.

Canadian barley prices are mostly unchanged, with only feed barley down slightly. Farmer selling is non-existent for malting and feed barley amidst current dryness concerns across western Canada. At the same time, barley demand in both domestic and export channels is weak.

Feed barley prices remain high for spot crop 2022 shipment, but a steep discount remains for crop 2023 October/ November/December 2023 shipment. Imported US corn prices declined with the drop in Chicago futures but for the time being Canadian feed prices are holding firm.

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