Australia: ABB Grain Ltd announced on March 15 it has closed its 2004/05 pools for feed 1 quality barley, however the malting barley pools will remain open to continue receiving deliveries. This applies to the No.1 feed pool in South Australia and New South Wales and the No.2 feed pool in Victoria. The South Australian No.2 pool will now accept feed 1 barley at a gross pool indicator of $140-150/t (approximately $113-123/t delivered Port Adelaide) along with feed 2-6 barley, which it has been receiving since early February.
There will be no feed barley pools open in Victoria and New South Wales.
ABB managing director Michael Iwaniw said that the effect of the exchange rate on sales was a major factor impacting on the gross returns estimated for growers. “We have been able to keep our malting barley pools open at the current gross pool indicators as the strong demand for malting quality barley, and the prices at which sales are being achieved, are able to offset the effect of the exchange rate,” Mr Iwaniw said. “Malting prices are holding up well, and coupled with the limited supply of malting barley available we are still able to offer the higher pool indicators for any malting barley yet to come in.”
Mr Iwaniw said the impact of the exchange rate meant ABB needed to close the feed 1 pools in order to protect the grain already delivered against them. “We have been able to make sales at good prices for feed barley, and are well advanced in our sales program; however the conversion back to Australian dollars means that growers will not see the full benefits of these sales.
“The impact of the exchange rate on returns can be demonstrated by comparing the current A$/US$ exchange rate (0.790) with that of early 2003 (0.615). Assuming a current US sales price of $150/t, this price would now have a $A equivalent of $190/t compared to $244/t in 2003 – a $54/t decrease.”
Wstecz
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