Australia: Barley growers begin receiving record Select Pool advances

Australian barley growers who supported ABB’s pre-harvest commitment pools have begun receiving record first advances, according to ABB’s press release, November 22.

ABB’s managing director, Michael Iwaniw, said that unprecedented, recent international grain prices had meant ABB was able to provide record advances for its Select pools against very attractive estimated returns.

“The advances* will be $370/tonne for malting 1 barley and $350/tonne for feed 1 barley for growers who supported ABB’s Select 1 pool on offer from late August until October 8; $325/t for malting 1 and $300/t for feed 1 in the Select 2 pool and $325/t and $262/t for the Select 3 pool,” Mr Iwaniw said.

“These harvest advances are extremely high and they reflect the confidence ABB has in achieving the current estimated returns.

“ABB was pleased with the support for these pools which demonstrate ABB’s willingness to provide options that remain popular and relevant to the majority of local barley growers.”

ABB Select was opened as a pre-harvest commitment option for growers who preferred the flexibility and convenience of ABB’s various pool options. This option allowed growers who prefer to market their grain via pools, the opportunity to take part in the buoyant domestic barley market that existed just before harvest this year.

Those record prices have now started to retreat as international supply and demand become more certain. The Select pools were available to growers across SA, Victoria and New South Wales.

The current estimated returns for the Select pools by grade are:

Select No.1 (closed on October 8)

Malt 1 $437.00

Feed 1 $427.00

Select No.2 (opened Oct 8, closed Oct 29)

Malt 1 $385.00

Feed 1 $360.00

Select No.3 (opened Oct 29, closed November 5)

Malt 1 $380.00

Feed 1 $320.00

23 November, 2007