Canada and the U.S. typically produce about one-fifth of the global supply of malting barley, with Canada accounting for over 60 percent of the total. Last year’s drought sent North American barley production down by over 50 percent and this year’s crop is still the second smallest in years. Ending stocks have not recovered at the same time beer makers and livestock feeders compete for more limited supplies. The result is that prices this year remain elevated and approach last year’s levels. Malting barley comes from the highest quality barley and is typically produced under contract. Barley typically has half the production cost of corn, and a net return that is just slightly lower. Assuming good weather, this is a marke...

TAGS – Feed Grains, North America