Europe's spring barley plantings, used for malt production, are developing well but the crop could be slightly down on the year, German malt company Jochen Mautner GmbH said in a report made available on Monday.
Plantings in the expanded European Union are estimated to be down by about three to four percent on the year, it said.
This was because plantings in 2003 had been unusually high after weather-damaged winter grains were re-sown with spring barley.
"This means a slightly reduced crop is expected on the year provided weather remains normal up to the harvest," it said.
Expectations of a slightly reduced crop were supporting previously weak prices, it said.
"The (European) market for new crop malting barley is not very active. Prices are at a low level but are not moving further downwards."
"Industry has for the moment sufficient cover. Malt contract for the new season cannot be calculated at a level covering costs at current prices."
Most European spring barley was planted in good conditions and recent rain had generally compensated for dryness earlier in the year.
"Plantings are mostly in good condition with normal to higher plant density," it said.
Cool weather meant plantings were slightly under developed during dry weather and so were often able to escape damage from dryness. But this could lead to a slightly later harvest start in some countries.
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