Bearish distilling markets slightly reacting in EU

Malting barley prices rebound in mid-May following Govt.(s) updates to lift lockdown measures in most countries. French Sebastian variety malting barley reached 3% over the last month. Priced at €176/MT last June 10th. Farmers and exporters are earning 40% less premium for the cereal compared to March, averaging at €25/MT.

The COVID-19 pandemic led to a reducing demand for malting barley spiraling down the supply outflow. According to the AHDB report, barley usage for the brewing, malting and distilling markets slumped to its all time low in more than 10 years, 114.7 thousand metric tonnes in April. Resuming to a 28% retraction. That movement happened due to a series of event cancellations and a meaningful industrial usage decline, driven by poor demand from the foodcatering, pubs and restaurants. That finally caused the dive on the beer consumption as an inverse correlation of the wheat value chains, translating into an overstock that cut premiums and tumble prices all across the union. Some maltsters tried to outflow the surplus to animal sector and its producers, resuming into leaner premium margins.