Canada: Malting barley values up in CWB’s Harvest and Early Delivery Pools

CWB on September, 14 released updated Pool Return Outlooks (PROs) for 2012-13. For the Harvest Pool, malting barley value is up by C$10 per tonne, at C$315 per tonne. For the Early Delivery Pool, malting barley value has risen by C$3 to C$315 per tonne

The main factor impacting barley prices is still the lingering effects of drought in the U.S. Corn Belt, the CWB commented. This has boosted world and local demand for alternate feed stuffs, which has supported the domestic barley price. Malting barley bids have also been supported by the rally in corn, although prices have softened in response to lower nearby corn values.

Dryness in Australia is causing some concern for total barley production levels Down Under, but only a portion of the crop is currently being impacted.

Southern Hemisphere barley production is still the key to determining price movement in international markets in the coming months. The premium for malting barley over feed barley is expected to remain under pressure pending the outcome of harvest results, the CWB said.

19 September, 2012