Australia: SQP pool returns for feed barley increase to AU$250-$270 due to a weakening Australian dollar and declining international shipping rates

A weakening Australian dollar and declining international shipping rates have lead to an increase in the 2008-09 SQP barley and wheat pools, Farm on Line published on September, 4.

Southern Quality Produce Co-operative Ltd’s estimated pool return for feed barley increased AU$20 to AU$250-$270, it was reported.

SQP Managing Director, Ben Fleay, said this reflects Australian dollar movements, falling international shipping rates and concern in some areas of continuing dry conditions, although weekend rains eased this fear in the market to some degree.

September is the second last month of SQP’s Early Order Premium (EOP) +PLUS which offers premiums of up to AU$8/t for barley to growers who forward commit their grain this month.

SQP’s EOP +PLUS also offers the security of a guaranteed minimum pool return and the peace of mind of a fixed contract cancellation fee should the committed crop fail.

“With rainfall of up to 20mm received across Western Victoria and the Wimmera, crop conditions have consolidated and remain in excellent condition going into spring in these areas.

"However average spring rains from herein are needed for crops to fulfil the excellent yield potential ” Mr Fleay said.

“The recent currency and market volatility adds to the uncertainty for grain growers in the Southern Victoria region and SQP growers should be looking at their marketing options now to avoid selling into a falling market late in the harvest.”

04 September, 2008