Canada: Malting barley values down in CWB’s March PRO for 2011-12 as demand from China declines

The CWB on March, 22 released its March 2012 Pool Return Outlook (PRO) for the 2011-12 crop year. Malting barley values have declined by C$2 per tonne since last month: select two-row to C$309 per tonne and select six-row to C$294 per tonne.

According to the CWB, demand for malting barley has been light as China, the largest malting barley importer, has stepped back from the market indicating comfortable supplies. Although further supplies of malting barley are still required to cover outstanding global demand in 2011-12, ample stocks in Canada, Australia and Argentina will more than cover these requirements.

Global malting barley premiums have narrowed this month as falling malting barley values meet increasing feed barley prices. The strength in nearby feed price indications has been driven by slower exports out of Russia and Ukraine and a shortage of nearby Australian shipping capacity. If malting barley premiums continue to fall, it could put malting barley area at risk in Canada and Europe, as farmers may be reluctant to grow malting varieties.

Initial production estimates for 2012-13 show increases in Canada and Europe, while Australia and Argentina are still forecast to have sizeable barley crops, the CWB said.

23 March, 2012