Argentina: Barley crop developments remains good overall
Argentina’s barley crop 2022 development overall remains good but with ongoing dryness concerns, particularly in the norther barley regions, RMI Analytics said in their early September report.
The analysts’ barley crop estimate for the nation is 5.37 mln tonnes where southern Buenos Aires province compensates for the shortfall in the dry northern region. Overall, barley is mostly in better shape than wheat.
The Argentina government implemented a special USD pricing for soybeans during September 2022. The result is 1 mln tonnes of soybeans was sold by farmers on Day 1 of the programme. Relevance? Farmers are likely to need to sell barley or wheat in the short-term as soybeans are generating cash flow. A similar programme is not expected for barley, but liquidity could suffer, the analysts point out.
Trade activity is slow but with one old crop cargo traded to China confirms once again demand remains not too far away. Prices are well supported, as farmer selling is non-existent (even at higher FAS numbers) and trade not willing to short malting barley in any big way. FAQ remains the focus, still 1-2 old crop cargoes could trade, while farmers have already marketed considerable crop 2022.
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