Malt barley supplies in western Canada are quite tight this year.
"There's very limited good news on the malting barley front," says Neil Townsend, market analyst with the Canadian Wheat Board. "It looks like the overall supply of selectable malting barley is going to be very thin."
"Secondly, the Chinese have been reluctant buyers," he says. "Frankly, the offshore demand for malting barley has been best characterized as reluctant."
He notes much of this reluctance is due to crop prospects in Australia. The Chinese and other buyers are waiting to see whether or not expectations of a bumper crop come to fruition.
Townsend says the outlook for the feed barley market also depends on the how the Australian barley crop comes in. This new supply is expected to shape offshore feed barley prices from January onward.
~ Wednesday, November 10, 2010 ~