The malt extract is available in two forms- liquid and powder. A malt is a cereal grain that is germinated by soaking in water and before entire germination process is being dried. The malted grain is a useful ingredient that is used in making milted milk, vinegar, beer, bagels, biscuits and much more. Not only wheat, but many other cereals can be malted, such as barley. Malt extract is produced for the beer breweries.The liquid malt extract is used in baking in addition to brewing. This liquid malt extract is dried to make powder malt extract.