Malting barley premium weakens with subdued demand

With winter barley harvest complete and spring barley well under way, markets appear relatively well supplied as the season nears completion.

Figures collected by the Andersons Centre indicate winter barley yields varied considerably between regions and average 6.7t/ha across the UK.

Anecdotal reports suggest spring barley yields have been promising so far and generally meeting specification, though there is still a wide degree of variation between regions.

Limited demand for exports and passive demand from maltsters has kept malting barley prices in check, with the premium over feed barley quoted in the region of £10/t to £15/t at present.

See also: UK wheat falls to £163/t pressured by large global supplies

Jonathan Arnold, trading director at Hampshire-based grain trader Robin Appel, said there would be ample supplies of malting barley in the marketplace, given subdued demand and a substantial carryover of crop from last year.

He added that there was also very little export demand at present, with large crops in France, Sweden and Denmark.

Mr Arnold inferred that while the malting premium may not be as noticeable this year, next year’s crop may see some improvement in 2026.

Barley usage by UK brewers, maltsters and distillers has increased marginally in recent months, reaching 159,100t in June.

However, total barley for human and industrial cereal usage for the full 2024-25 season was down by 6% on the year, at 1.78m tonnes.

The Maltsters’ Association of Great Britain (MAGB) assesses that 58% of UK malt went to distillers, 31% to brewers, 8% to export, and 3% for other food last year.

Looking forward, MAGB estimates that collectively UK maltsters will purchase roughly 1.9m tonnes of malting barley from the 2025 crop.

Meanwhile, feed barley markets have performed better, with high beef and sheep prices and a lack of fodder leading to increased demand for purchased livestock feed.

Ex-farm prices collected by Farmers Weekly midweek put feed barley at £143/t.

Harvest progress

Harvest has also been progressing for wheat; however, yields have shown a very mixed picture.

In parts of the South which have had rainfall, crops have generally performed OK, but in other areas yields and quality have suffered considerably.

Domestic wheat markets continue to come under pressure, with UK feed wheat futures for the November contract opening at £169.3/t on 13 August.