Barley price surpasses wheat

The fact that barley is more expensive than wheat is quite exceptional, but it does happen more often. The last time was in January 2019. For the first time since then, barley is listed higher than (feed) wheat in the Rotterdam quotation at €256 and €253 per tonne respectively. And also on the stock exchanges of Groningen and Middenmeer, barley quotations are increasingly moving towards wheat quotations.

Alternative in feed
An explanation that barley's price is more stable than wheat is difficult to give. But there are a number of factors that play a role. For example, corn and soy (meal) are relatively expensive and have risen faster than wheat and barley. Corn and soy are important raw materials for animal feed and buyers/feed manufacturers are looking for cheaper alternatives. This could be wheat, but barley is also extremely suitable for use in feed. This doesn't just happen in Europe.

Barley is also in demand internationally. The EU's total barley exports up to and including March are approximately 8,4 million tons. That's about 1,2 million tons more compared to the 5-year average. What is striking is that China in particular is currently importing large quantities of European barley. Up to and including March, the country has already imported almost 2,4 million barley, according to figures from the European statistical agency Eurostat.

Last year this was 966.750 tons over the same period and the 5-year average is even lower at 589.432 tons. The increase is less significant in other important destinations, such as Algeria, Iran and Brazil. Saudi Arabia, the largest buyer, has even imported less barley: 1,3 million this season compared to 2,2 million tons in the 5-year average.