Canadian barley gains support from China and Saudi Arabia

The global barley market showed signs of recovery in late 2025 and early 2026 amid strong demand from key importers. According to Jerry Klassen, an analyst at Resilient Capital, higher barley yields in Canada combined with attractive price levels drew increased interest from buyers in Asia and the Middle East.

Klassen estimates that Canadian barley yields rose by about 25% in 2025. China took advantage of this situation, purchasing around 1.47 million tonnes of Canadian barley between September and December, mainly at lower price levels seen in August and September. Additional market support came from Saudi Arabia, which imported an estimated 251,000 tonnes of Canadian feed barley from September through November.

The analyst emphasizes that the emergence of Saudi Arabia as a buyer of Canadian feed barley is traditionally viewed by the market as a signal that prices in Western Canada have reached a bottom. Purchases by one of the world’s largest barley importers typically occur at the lowest price levels, after which the market has room for gradual recovery.

Domestic demand for barley from the livestock sector is seasonal and tends to rise during the winter months. At the same time, heavy selling in the fall—when farmers market grain immediately after harvest—coincides with lower cattle-on-feed numbers, temporarily putting pressure on prices.

In December and January, the situation begins to change: export activity gradually declines, while domestic feed demand reaches seasonal highs. Combined with potential weather risks and limited on-farm stocks, this could create conditions for further strengthening of the barley market in 2026.

Tags: barley, Canada