EU: European malting barley market review

Analysts provide that May rainfalls in Germany and Europe-wide benefited largely to supplying plants with water. But till last days, general low temperatures were unfavourable to vegetation cycle.

Winter malting barley stocks were supplied with sufficient soil humidity during the grain filling phase. Analysts believe the winter malting barley crop is to be good.

The estimated malting barley production (crop 2006) in the EU of about 10.9 million tons is faced with a nearly 10 million tons demand from the malt industry. Assuming the fact that malt production has been reduced in the EU, the calculated surplus of 0.9 million tons is clearly beneath its last year level.

Russia and China are probably to try to compensate their malting needs trough imports from Europe. In this case, the annotated surplus shell quickly be exhausted. As it was seen already with the 2005 crop, even with marginal quality and some insignificant feed barley price difference, 0.9 million t of surplus are not very hard to minimize.