Malting barley deficit EU27 confirmed

December 6th, 2011 - In the past months much uncertainty existed about the actual outcome of the EU 27 malting barley harvest.
Unprecedented dry conditions during April/May, followed by ongoing wet conditions during harvest, created a big question mark as to the availability of malting barley for season 2011/2012.
Where as per the end of October most malting barley supply&demand sheets were still pointing to a surplus of approx. 700.000 tons, this has now dramatically been reduced to a deficit of approx. 350.000 tons. For a good comparison, the EU27 normally has a surplus of about 1 to 1,5 milion tons.
The situation is thus without doubt serious and the shortage of quality malting barley is real.
Imports out of other regions, such as Argentina, will be needed.
As for the price development in the coming months, it goes without saying that the current situation is supportive to EU prices. On the other hand prices are already at rather high levels and good crops are approaching out of Argentina and Australia. All together the EU27 might see lower prices over time, should imports out of other regions actually arrive. In the meantime however, the situation will remain very tense.

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