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Barley can only be used for bread if you have invested the development point in it.
Barley is for malt, you can't grow malt.
Does the Trader have a horse? It probably just speeds up HIS travel times to find stuff. Honestly, I never checked to see if the Trader does anything besides stocking his shelves and searching the trade routes.
Also, a possible hangup could be the Advanced settings in your Storage. Are the desired items on the 'accepted' list? A check mark means accepted, a X means they are not. IF it's not accepted, Storage will leave the barley wherever it is, such as at a farm. I don't know if the Malt House will travel to the Trader for it. Mine is always picked up by Storage people.