Argentina: Barley crop continues to progress toward good outcome

The Argentine barley crop continues to progress toward a good final outcome. Weather conditions have been favourable with more rains received over the past two weeks, RMI Analytics said in their early November report.

As stated by RMI Analytics, a few minor frost events may reduce the upper potential for the crop but their estimate remains at 4.8 mln tonnes. A good crop in Argentina is desperately needed by the world market due to the tight supply situation.

Barley prices remain steady with malting barley in a range of USD325-330/tonne, FOB. The market remains in an uptrend with interest expressed for two FAQ Panamax cargos intended for Europe, which the trade is reluctant to sell at this moment due to open demand still high in China and South America.

At about 5 mln tonnes production ending stocks will likely tighten to very low levels due to the very strong demand environment.

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