Australia: ABB announces record harvest pool first advances of $325/tonne for malting barley

ABB Grain Ltd announced record harvest pool first advances of $325/tonne for malting barley and $262/tonne for feed barley, following the opening of its 2007/2008 harvest barley pools, according to ABB’s press release, November 7.

ABB Grain’s managing director, Michael Iwaniw, said the figures represented “unprecedented first advances” and reflected continued, exceptionally high international barley prices.

This week ABB opened its 2007/2008 harvest barley pools quoting gross pool returns of $375-$385/tonne for malting 1 and $300-$310/tonne for feed 1 grade.

Mr Iwaniw said the pool advances took into account current market conditions including international barley prices, the value of the Aussie dollar and ship chartering rates.

“Growers have witnessed record prices for barley and this has been driven by a combination of reduced supply in the international and domestic markets,” he said. “ABB has been able to capture these prices with some sales to regular customers which are reflected in the price estimates.

“As always we will be endeavouring to maximise pool returns and we believe growers will find these pool estimates for the 2007/2008 crop and the first advances, very attractive.

“ABB, as usual, will continue its renowned reliability of payment to growers. Once growers have delivered barley to our pools, the average payment time for their advance is seven days. We’re especially conscious of growers’ need for good cash flow through harvest and beyond.”

Mr Iwaniw said that although ABB had approved record high harvest advances, the pools could close at any stage to protect growers’ equity.

Growers who are yet to harvest grain, or are in later growing regions, also have the option of contracting into the pools to benefit from the current high returns.

07 November, 2007