21 July, 2006

EU: Malting barley surplus expected at 300,000 – 500,000t

Most estimates of the EU malting barley selection show a surplus of 300,000 – 500,000 tons of spring barley and a similar amount of winter malting barley. That is not much, when one hopes for rather normal exports of half a Million tons, experts believe.

Recently even more negative S/D balances appeared. Also provisional balance shows that the EU malting industry must count on very good crops in France, Germany and the U.K., and hopefully better results in Scandinavia and Spain than forecast at present.

EU malting barley markets will be tight, lower price levels will hardly materialize. The expected further acreage reduction in 2007 will add fuel to a steady or firmer market trend.

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