The recent pop in barley prices has bolstered expectations that acreage levels will increase in the year ahead. Before we get to that, let’s discuss what pushed prices higher in February.
Last month, the International Grain Commission release its first 2018-19 outlook.
The IGC says it expects that global barley acres will increase by 2.22 million acres. That will push acreage to a three-year high of 119.2 million acres.
The agency cited an uptick in production in Australia, Canada, the European Union, Russia, and Ukraine. The largest gains are expected in Europe, which is expected to see the acreage increase to 30.87 million acres. To reach this level, the EU is adding 988,000 acres alone.
But that’s not the only story worth your attention.
Last month, we focused on the rising production and prices of barley, as well as the pros and cons of growing malt or feed barley. We also examined:
• What Saudi Arabia’s barley imports imply about the global demand;
• The role of China in international barley trade;
• Challenges of beer production with barley, especially considering weather challenges;
• The convex of rising Canadian barley production and Canadian barley prices; and,
• If the high prices but the low demand for malt barley over feed barley worth it?
Moving into the month of March, domestic and international demand will continue to impact both feed barley prices and malt barley prices. Be sure to sign up for for free 3-week trial at GrainCents as this month could be the most impactful for how and when you price your barley for the rest of 2017/18 old crop supply, as well as a significant portion of your 2018/19 supply.