Malting barley premium returns to historical average in the UK: Grain market daily

Published 2024년 10월 30일

Tridge summary

The malting barley premium in the UK has decreased since last year, due to an oversupply and weaker demand. The current premium is back to the historical average, with ex-farm premium malting barley for spot delivery at £175.40/t, and a premium of £22.30/t compared to feed barley. The UK's barley crop is expected to increase due to a larger spring barley crop and favourable weather conditions. Domestic demand from the brewing, malting, and distilling sector is predicted to decline, and the export market is providing some support to the premium. However, the strength of sterling over the euro is limiting its support. The likelihood of malting barley being used for animal feed increases if the premium further contracts.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Sign up to receive the Weekly Market Report and Grain Market Daily from AHDB. The malting barley premium has continued to come under pressure since it was last reported in September, falling back from the highs seen last year. Ample supply and relatively weaker demand are both key factors weighing on the premium this marketing year. On Monday, the latest Corn Returns reported ex-farm premium malting barley for spot delivery at £175.40/t, while ex-farm feed barley was reported at £153.10/t, offering a premium of £22.30/t. This is starkly lower than last year, where the malting barley premium for October delivery was £71.25/t on average. However, 2023 was an exceptional year, the current premium is more of a return to the historical average as opposed to being historically low. The release of the English and Scottish cereal production figures confirmed expectations of a larger spring barley crop, both reported greater than their five-year average by 3% and 7% respectively. The UK’s ...

Source: Ahdb