Barley and malt

June 3rd, 2010Activity in the malt market remains rather limited. New crop malting barley prices, which have been increasing since mid April on a combination of weakeness of the Euro, little offers from farmers, and delayed plantings due to prolounged winter conditions, have started to stabilise in the last two weeks. As a result of first rainfal in the main growing areas, prices experience some downward pressure since this week. The situation in leading producer France, is still giving reason for concern, as the main areas below Paris received little to no rains and thus continue to suffer from insufficient soil moisture levels.

Notwithstanding, in absence of demand and further rainfal forecasted for next week, prices should in principle have some downside potential. They remain however clearly above the previous low that we saw in October last year and early April this year.

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The above information is for general purposes only. Any reliance you place on the given information is therefore strictly at your own risk.

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