Why is the malting barley price dropping?

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Malting barley supplies in Western Canada are limited due to the bad harvest. Meanwhile, continuous rains in Eastern Australia over the past three weeks have cut the Aussie supply of malting barley.

So why is the Pool Return Outlook for malting barley continuing to drop? Shouldn’t the price be rising? In the latest PRO released yesterday, malting barley is down another dollar a tonne.

Two-row with average Saskatchewan freight and handling deducted now has a PRO of only $3.96 a bushel.