Australia: AWB revises down barley pools on flat global demand

The AWB announced on December, 16 that estimated pool returns (EPRs) for its 2011/12 barley pools have been revised down by A$5 - A$15 a tonne as global barley demand remains relatively flat.

AWB’s Jon White said: “Despite the reduction is EPRs the 2011/12 barley pool provides an opportunity for Australian barley farmers as we see demand gathering momentum in the New Year as Saudi demand returns to the market beyond April, which will support demand and our EPRs.”

“Globally the barley supply and demand outlook is evenly balanced providing limited sale opportunities putting pressure on domestic barley prices.

“Due to the current barley quality profile malt prices have dropped significantly due to oversupply and limited demand while feed barley grades have been revised down modestly.

“Farmers need to be diligent when comparing barley pool returns and should take into account the timing and accuracy of estimated pool returns as some do not updated guidance regularly.

“AWB regularly updates its EPRs to accurately reflect the current state of the market to reflect our view of the market over the life of the pool giving farmers a realistic estimated value,” Mr White said.

23 December, 2011