Australia: Higher-priced malting barley varieties drop in value

Australia’s wheat and barley prices fell again last week, continuing a trend that has occurred since early June, Weekly Times Now reported on November, 24.

Malting barley prices fell heavily, tumbling A$25 a tonne in silos behind the ports of Melbourne and Port Kembla and A$20 for those destined for Portland and Geelong.

These heaviest falls were for the higher-priced malting varieties such as Flagship, Gairnder, Baudin, Commander and Buloke.

Prices for malting one classification for Schooner and Sloop fell about A$15/tonne.

In contrast, prices for F1 feed barley fell A$3/tonne last week.

It appears the production risk to new-crop malting barley is reducing.

Growers in the northern Mallee report around half of their barley sown to dedicated malting varieties is achieving the malt number one M1 grade.

Protein is shaping up as a key factor in determining whether samples will achieve the various varietal variations of M1.

Barley sown into paddocks that produced legumes last year has produced barley too high in protein for malting, but other barley crops have yielded barley too low in protein.

Traders also have questioned the demand for malting barley.

Once the small domestic demand for malting barley fills, prices need to readjust to export parity.

China remains the key market for malting barley and maltsters in China are renowned for their capacity to produce malt from lower grades of malting barley.

Wheat prices have eased a more modest A$6-A$8/tonne across most grades.

APW was quoted at A$211/tonne delivered to the ports of Melbourne and Geelong earlier this week.

Last week rains interrupted harvest with Mallee producers receiving between 5 and 15mm.

On November, 21, growers at Rainbow were moving into their canola paddocks after finishing their barley last week.

While some wheat has been stripped in southern NSW, little has been harvested as yet in Victoria.

The domestic stock feed buyers have been quiet, buying small volumes for their immediate needs.

25 November, 2011