Australia: Despite imperfect weather more reports on positive barley harvest results coming in

Although on the surface the story of wet conditions in eastern Australia continues, there is favourable clearing in the forecast. There are reports of positive barley harvest results despite imperfect weather with Victoria indicating malting quality barley being seen in harvest deliveries, and very welcome news after seemingly never-ending rain over the past weeks, RMI Analytics said in their December report.

Rain has slowed Western Australia and South Australia barley harvest but harvest is expected to restart quickly and advance at a strong pace.

Harvest results in Western Australia and South Australia have been generally positive, and improving the mood across the trade.

RMI Analytics’ barley production estimate remains at 12.6 mln tonnes but the final quality outcome is still being defined. According to the USDA, three of the four largest barley crops over the last 30-years came during the past three years. Strong evidence that barley is well positioned with farmers and represents an amazing rebound after a prolonged drought.

With harvest trying to push ahead, market pricing is a bit ill-defined but malting barley premium remains wide. The encouraging reports of malting quality on the east coast reduce the likelihood of long logistic hauls into maltings in the east.