Australia: ABB Grain Ltd announced on November 25 2004 it has increased its 2004/05 gross feed 1 barley pool indicators by $10/t across Victoria, New South Wales and south eastern South Australia in response to domestic market demand.

The gross pool indicator for the Victorian No.1 pool is now $165-175/t for feed 1 barley, while the gross pool indicator for the Victorian No.2 pool, New South Wales No.1 pool and south eastern South Australian pool is now $160-$170/t for feed 1 barley.

ABB managing director Michael Iwaniw said the increase in the feed barley pool indicators reflected strong demand in eastern states for quality feed barley.

In South Australia the increase applies to the south eastern SA pool currently running for deliveries to selected sites east of Murray Bridge that are freight advantaged to the eastern states.

“It is becoming obvious that poor seasonal conditions in Victoria and southern New South Wales are spurring strong domestic demand for No.1 grade feed barley,” Mr Iwaniw said. He said this demand was also reflected in the decision to increase the feed 2 prices in NSW and Victoria by $5/t.

The company was also moving to open a feed 3 pool in Victoria in response to grower inquiries, with an estimated gross return of $130-140/t for the No.1 pool (applicable to those who have previously contracted into the No.1 pool only) and $125-$135/t for the No.2 pool.

Mr Iwaniw said that the malting barley pool indicators remained steady at their current values, with Chinese customers awaiting the outcome of Australia’s barley harvest prior to making any purchasing commitments.

28 November, 2004