The world barley crop will be similar to last year’s record production, says H.M. Gauger in his recent market report which was published today. Dryness in large parts of West and East Europe will have an effect on yield but timely rainfalls in Spain, North America and Australia will more than make up for that.
Overall, there will be a great surplus of malting barley which is further affected by a declining demand for beer and malt as a result of the corona pandemic (inside.beer, 29.5.2020).
The malt market was rather inactive with hardly any business due to the uncertainty of the crisis but is expected to recover in the months to come. Contracted barley and malt volumes which could not be ordered in the last months will be deferred to a later delivery date with only few wash outs. This will, of course negatively affect new contracts which are expected to be concluded with lower quantities and at depressed price levels. However, large quantities for delivery in 2020 had already been booked before the time of the corona crisis, accoriding to H.M. Gauger.