Australia: Most regions reporting very good barley crop development

Most regions in Australia are reporting very good barley crop development, with further rain helping in most areas, RMI Analytics said in their late July report.

The main exception remains central New South Wales where ongoing wet conditions are creating a problem as farmers are still trying to seed barley.

With good crop prospects across Western Australia, South Australia, and Victoria, RMI Analytics’ crop estimate has been moved higher to 11 mln tonnes. The good prospects more than make up for the New South Wales problems.

Barley prices in Australia are moving lower in alignment with world prices but at a slower pace and reducing the price spread between origins in the process. Farmer liquidity is an issue at the moment but in a quiet trade environment that is not a major concern for now.

Demand remains rather absent at the moment as global buyers appear willing to watch prices drift lower and lower.

Trade relations between China and Australia remains a discussion topic but the consensus remains a change in barley tariff is unlikely.