Australia: Improved barley condition driving prices sharply downward

The much improved barley conditions are having an immediate impact and driving Australian prices sharply downward, RMI Analytics said in their early July report.

China is the key market, and to be competitive into the Middle East market, requires very competitive pricing in relation to the Black Sea origin. Amidst falling prices, cooler temperatures, and considerable time until harvest, farmer selling is limited.

Buying interest remains present, but with liquidity a challenge, and further trade activity may be limited in the short-term as buyers’ price targets below sellers’ ideas. Currently, domestic feed barley prices are supported, as the recent rains cause logistic issues, and prompt demand has appeared as pasture availability is reduced. Overall, feeders are covered until Oct./Nov.’24, limiting demand in the medium term.