Argentina: Barley crop remains on very positive pathway with further rains received this month

With further rains received in the past two weeks, Argentina’s barley crop remains on a very positive pathway. The forecast remains at 4.9 mln tonnes, with 4.6-5 mln tonnes the consensus range, RMI Analytics said in their report earlier this month.

Despite the beneficial rain received, farmers are reluctant to sell further with 1.5 mln tonnes or 30% of crop sold already and a majority feed/fair average quality. The result is low liquidity for the time as farmers are bullish on global news.

Argentina barley prices are up USD5 per tonne across the board for FOB levels for both malting and feed/fair average quality barley. Chinese buyers have not shown a willingness to pay these higher prices but local demand appears strong.

Lack of liquidity will reduce trade activity in the short-term but there continues to be small trade (to China) conducted, the analysts said.

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