Australia: Malting barley exports more than double in March this year

Australia exported 627,353 tonnes of barley and 100,734t of sorghum in March, according to the latest data from the Australian Bureau of Statistics.

Feed barley exports at 390,828t were down from 415,454t shipped in February, with China on 384,651t the destination for 98pc of the March volume.

Malting barley exports at 237,055t more than doubled over the month from 117,338t shipped in February.

China was also the major destination for malting barley exports on 185,299t, followed by Vietnam on 21,768t and Peru on 19,800t.

Sorghum volume also surged, almost doubling from 50,766t shipped in February, with China on 92,224t the biggest market, followed by Taiwan on 6850t and The Philippines on 1569t.

Flexi Grain pool manager Sam Roache said March barley exports delivered the expected recovery from the smaller February numbers, which were low due to Chinese New Year holidays and associated shutdowns.

“Malting barley shipments were high within this, as was the Chinese percentage of exports, which moved above 90pc for the first time in a few months.”

Mr Roache said exports of malting barley to South America, and also Vietnam, are expected to continue to October.

Total malting and feed barley shipments over April and May are tipped to continue at pace.

“We see strong shipments for April, with 600,000t plus; May will be lower, but still 400,000-500,000t.”

“Stems today show us more than 90pc of our expected exports for the season, so it is very much expected that volumes drop as we run the barley stocks down to an expected record low carry-out Australia wide.”

Mr Roache said Chinese demand for March shipment was again above market expectations.

“We are seeing a complete clean-out of barley from Australia, France and Ukraine.

“Barley is becoming hard for the Chinese to buy across all their supply countries, with France too wet and the crop looking poor, Ukraine dry and frost affected, and Canada way too early to sell.

“Australian production, especially for barley-heavy barley areas, isn’t looking great today either.

“Just as we are getting very tight on barley, we see wheat moving higher, and barley begin to calculate into unexpected secondary destinations, while also remaining cheap locally into feed homes.

“There remains a lot to play out in barley markets.”

On sorghum, Mr Roache said the unusually low volume reflected considerable weather delays and lack of certainly around quality rather than the lack of will to buy.

“With the continuing weather, we still see sorghum limping on the export front, while pricing fairly well into domestic rations for the first time in a long time.”

Mr Roache said US sorghum has become more expensive, and Australia remains a good option price- wise for the Chinese buyer.

“The further move higher in corn and US wheat last week will only amplify this, so when the market makes sense, the export demand will be there; so will the logistics and shipping space.”

13 May, 2024