Australia: Malting, feed barley exports surge in June

Australia exported 725,085 tonnes of barley and 249,071t of sorghum in June, according to the latest export data from the Australian Bureau of Statistics, Grain Central reported on August 13.

The feed barley component at 485,276t was more than double the 216,118t shipped in May, with shipments to China at 384,002t accounting for 79 percent of the total.

The second-biggest destination for Australia’s June-shipped feed barley was Japan on 75,600t, followed by Vietnam on 17,855t.

Malting exports at 239,809t also surged from the May total of 147,507t, with China on 146,173t accounting for 61pc of the June figure.

Mexico on 33,000t, followed closely by Vietnam on 31,295t, were the second and third-biggest markets respectively for June-shipped malting barley.

China was also the major market for June-shipped sorghum, taking 220,871t, or 89pc, of the 249,071t total.

Japan on 22,064t was the second-biggest market for June-shipped sorghum, followed by Taiwan on 4380t.

Flexi Grain pool manager Sam Roache said June barley figures were the biggest seen since January.

“WA shipments where particularly strong, accounting for more than half of total shipments and sending the state carryout stocks to record tight levels,” Mr Roache said.

“The strong June numbers were driven by increased availability in Australia, with farmers and traders clearing barley length prior to Northern Hemisphere harvest pressure, and growing domestic confidence.

Mr Roache said limited availability from alternative suppliers saw Chinese demand for Australian barley remain strong through May, June and July.

“Notably for June, Chinese barley imports were around half of May, at 820 kmt, with Australia supplying the vast majority.”

July and August shipments of barley are expected to be well down from June levels at around 200,000-300,000t per month as business already on the books is executed.

“September and October will be even lower again, which is no surprise, given the record tight stock on hand for barley today; there is nothing left.”

“Looking abroad, we are seeing a combination of lower Chinese corn prices and Black Sea harvest pressure from Ukraine dragging on the market today, with French and Canadian feed forced to compete.

“Demand is still there, but at lower levels compared with the Australian values we had been selling, and in some cases domestic prices, and notably dragged on by local corn prices.”

Mr Roache said small barley crops in Ukraine and France and significant quality issues in the EU, the price-pressure window is expected to be relatively short for barley in isolation, with the added note of potential support for FAQ malt over world feed markets due to French quality issues.

“Markets will be watching July and August import figures to get a better gauge on barley demand into China, which has had a negative tone despite a likely record import year.”

Sorghum imports fell, despite steady buying from China, with export price levels little changed over recent weeks.

“The July and August stems are looking strong, with bulk shipments looking to be above June, and containers continuing to push out the door.

“We are racing the clock to clear stocks prior to US milo harvest and pressure around October, and likewise the pending Australian winter-crop harvest.

“It will likely command the majority of the shipping stem in sorghum-exporting regions come November-December, while also forcing freight costs significantly higher than current levels.”

14 August, 2024