Australia: Malt pool reduced by A$3/tonne, ABB Grain said on December 28

ABB Grain Ltd has reviewed its gross barley pool indicators for 2005/2006 and has reduced its malting barley estimate by A$3/tonne, to A$190/tonne* in South Australia, Victoria and East Coast. The feed barley estimate remains unchanged at A$165/t.

The indicator prices for Victorian growers who contracted to the No.1 pool which closed on October 31 are A$195/t for malting barley and A$170/t for feed.

ABB’s General Manager Marketing, Nigel Officer, said that the reduction reflected the present uncertainty about the eventual final split between malt and feed barley.

“Chinese demand for malting barley has been covered for the time being and, at this stage, there is not expected to be any further demand in China until maybe March or April 2006,” Mr Officer said. “However, ABB is shipping considerable feed barley now and in the months ahead so this has enabled us to maintain the gross pool estimate for feed at its current rate.”

Mr Officer said the longer term prospects for the Chinese market remained good with only about 30% of its malting barley needs so far covered.

* A further $5/tonne premium also applies for Baudin and Sloop malting varieties, although this season is the last in which this premium will apply.

29 December, 2005