EU: The main reason for lower malting barley markets is the domestic situation, analysts comment

In the export markets several trades of high protein French malting barley have been reported, at large discounts from regular quotes. There seems to be good interest as well by overseas brewers in purchases of Esterel (6row winter barley) malt. But the main reason for lower markets is the domestic situation.

Average malt prices for the crop year are dramatically low, and maltsters are forced to look for the cheapest possible supplies, i.e. also barleys of second grade quality. This will enlarge EU malting barley supplies by a good margin. Local brewers without a real alternative to their traditional supplies will have to accept a somewhat lower malt quality this year. But quality-sensitive large brewing groups in- and outside the EU will receive malt with correct quality parameters, competition on malt markets is too sharp to risk problems with large customers.

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