Supply of feed and malting barley could become scarce in the EU

The drought in northern Europe has affected barley harvest so much that the supply of feed grain and malting barley could become tight. The decent French grain harvest can save the supply situation, but the expectation of experts.
In Germany, Poland, Great Britain and Scandinavia there were painful harvest losses. There are noticeably fewer feed barley and you have to expect a shortfall of 500,000 tons of malting barley in the EU. However, it looks like France can rip things off with a decent crop. Malt could also be produced from winter barley and barley of inferior quality and imports from South America would have to close the remaining gap.
The German Farmers Association lowered its forecast for barley harvesting in 2018 to 7.3 million tonnes (-18.8% compared to the previous year). Poland's winter barley harvest will be 6% smaller than in 2017 at 3.4 million tonnes. However, the malting barley in Poland is in very poor quality.
In the UK, summer barley production was far too dry for a long time. Winter barley is grown on the island very little. The evaluation of the harvest quantity varies very much; the quality is a problem.
The prices for malting barley have a premium of 50% compared to feed barley.
The French barley harvest has so far shown quite decent results, which strengthens the position of the local vendors. That will then probably be reflected in the demands. The barley harvest is almost complete in France. The yields and qualities are average. The Ministry of Agriculture in Paris estimates the barley first in the country at 12.1 million tons, as in the previous year. Strategy Grains estimates only 11.5 million tons and other analysts expect only 10.5 to 11 million tons.
Text: HANSA Derivatives Trading GmbH /

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