World barley production is forecast by The International Grain Council (ICG) 2 million tonnes higher than before, at 146.2 million, an increase of 6.2 million from 2003. Prospects improved in Canada, the EU, Russia and the US. Higher feed use in Russia raises the world consumption estimate to 143.1 million tonnes, but this remains slightly below that in 2003/04, mainly because of a downturn in the EU, ICG posted on July 29. The trade forecast is raised by 0.4 million tonnes, to 15.3 million (14.3 million), because of higher than expected feed demand in Iran. The increased level of shipments is also due to the expected upturn in China’s malting barley imports.

International barley markets remained weak in July, according to ICG, but derived some support from increased demand and slow new crop arrivals from Russia and Ukraine. Black Sea prices were up to $40 lower than the cheapest offers from the EU, where prices were at (November) intervention levels.

ICG also revealed that during July 2004 Jordan bought 0.1 million tonnes of Black Sea feed barley; Libya purchased 30,000 tonnes of feed barley while Tunisia bought 50,000 tonnes of feed barley.

31 July, 2004