Australia: Barley crop forecast stable, exports slightly up on Chinese tariff news

Australia barley crop 2023 production forecast remains at 10.88 mln tonnes but exports forecast is slightly up and ending stocks drop on the Chinese tariff news, RMI Analytics said in their latest report.

Moisture conditions are improved (nearly ideal) on widespread rains, setting up good conditions for the upcoming seeding window. In anticipation, fertilizer and other inputs for farmers are moving into place.

The supply chain has been very busy with nearly 1 mln tonnes of barley exported during February 2023, of which only 40 thousand tonnes of malting barley and vast majority – feed, with Saudi Arabia, Japan, and Thailand as the top trade destinations.

Australian barley prices are adjusting to the Chinese tariff news, malting barley supported while feed barley is bearish due to the world market.

The tariff resolution ‘may still be months away’ said Australia’s Trade Minister Don Farrell. Meanwhile, the market prepares for an opening of trade to China.