Australia: Chinese demand pushes up Australian barley prices

Chinese demand has pushed up Australian barley prices by A$10-16 a tonne in the past month, the Weekly Times Now reported on December 1.

Malt barley prices have jumped by about A$16/tonne two months ago to A$212/tonne delivered Geelong, while feed barley has increased A$12/tonne from early October to A$177.

Emerald Grain south east Australia regional manager Brad Cullen said Chinese demand for barley had lifted the feed market, along with a fall in the Australian dollar. The Australian dollar has dropped about US1c in the past month and on Monday, November 28 was at US74c.

“Chinese demand is starting to line up and it’s spurring barley demand, along with harvest pressure,” he said.

CBH Group reported growers selling feed barley for $200/tonne free in store last week.

“Interest has picked up from customers within China and there’s also the possibility of seeing Saudi Arabia in the market early in the New Year,” CBH trading general manager Jason Craig said.

Canola values have also lifted about A$23/tonne since early October and on November 28 non-GM canola delivered Geelong was worth A$540, but in Western Australia prices were even higher: free in store canola delivered Kwinana was being traded at A$580 on November 25.

The local canola price has benefited from a lift in international canola futures, which have risen by A$45 since early October over concerns about the Canadian canola crop and a lift in soybean futures.

01 December, 2016