U.K. farmers are set to increase planting of spring barley by 40 percent to 50 percent this year after “abysmal” weather in 2012, according to Frontier Agriculture Ltd.
“We are likely to see a huge increase in the U.K. spring-barley crop and supply may outweigh usual demand,” Jonathan Hoyland, a barley trader at Witham St. Hughs, England-based Frontier, said in an online report today.
Farmers should start selling part of their grain now to lock in prices and avoid the risk of having to sell spring barley at a discount after harvest or being unable to find local markets for their crops, according to Frontier.
“Conversely, an unexpected event elsewhere could still benefit the U.K. market and create demand at any point, as happened previously with both the French and Danish barley crops suffering from weather-related issues,” Frontier said. “At the moment, this remains an unquantifiable factor.”
The grain trader is a joint venture of Associated British Foods Plc and Cargill Inc.