German ex-farm prices were currently 216 marks per tonne, 12 percent less than a year ago, ZMP said. Fixed contracts for material from the 1999 harvest had been initially struck between maltsters and producers at 270 marks but the price quickly dropped to 240 marks in the spring of 1999. Germany, usually a net importer of malting barley, might see sales by domestic suppliers rise to 2.1-2.2 million tonnes in 1999/2000 from 1.84 million in 1998/99. That would be near estimated annual domestic demand.

Reports of good harvests from France, Ireland and Austria were adding to European supply pressure. The only way to boost prices would be a sustainedincrease in malt export refunds and increased malt export activity by the European Union, which would enable more EU material to flow onto the world market. EU malt export licences by Oct 5 had totalled 992,1000 tonnes versus 657,200 tonnes a year earlier. Malting barley sellers were also hoping prices might rise because of quality reductions in northern European harvests this year, ZMP said.