USA: Feed barley prices remain unchanged, malting prices are lower

The latest USDA Feed Outlook Report that was released on February 12, focused on two major points impacting barley prices at this time – the large barley crop produced in both the U.S. and Canada this year, and the difficulty in moving that barley from the farm to where it’s needed, Farmandranchguide.com reported on February 23.

Using U.S. Census data, it appears the pace of barley imports at this time is slower than expected, therefore the Economic Research Service, the author of the Feed Outlook Report, lowered the marketing year imports by 5 million bushels. The report noted that the substantial domestic barley harvest, which is estimated at 215 million bushels, has tempered imported malting barley demand.

In addition, transportation difficulties in Canada, who also had a larger than average crop this year, are also contributing to the sluggish pace of exports to the U.S.

Abundant corn supplies also was a factor in the equation, since the Feed Outlook report decreased the barley feed and residual amount by 5 million bushels. This action, according to the report, was justified by abundant domestic corn supplies.

The number of grain consuming animal units is forecast at 91.38 million units, 0.61 percent higher than the December forecast, but 0.36 percent lower than the 2012/13 forecast.

The beginning stocks at the start of the 2013/14 marketing year were estimated by USDA at 80 million bushels, while ending stocks are pegged at 90 million bushels. The marketing year for barley runs from June through May the next year. During the last reported quarter, September through November, the ERS reported farmers received an average of $5.93 for all barley marketed.

On a world-wide basis, barley production is expected to increase by 0.3 million tons this marketing year, with increases coming from the Ukraine, European Union and Kazakhstan, with decreased production expected in Russia and Algeria. World projected ending stocks, according to the Feed Outlook Report, are projected to be down 0.4 million tons.

Economists at ERS raised the season-average midpoint price by a nickel to $6.05 per bushel and justified the raise by noting the strength of rising corn prices. Sustained malt premiums, even as the majority of the crop has been marketed, also bolstered the all-barley price outlook.

Feed barley bids at Minneapolis on February 13 were $3.70 a bushel delivered either by truck or rail, and there was no bid at Duluth. Rail car bids for spot market malting barley was $5.56 at Minneapolis.

Average local elevator board prices for the week were $3.20 a bushel for feed barley, which was basically unchanged, however malting barley, at $4.25 a bushel was down a quarter over the last two weeks.

26 February, 2014