Argentina: Farmer barley selling remains very low

Farmer barley selling remains very low in Argentina, and the estimation is farmer selling will only break loose once harvest begins and final quality/yields are confirmed, RMI Analytics said in their latest report.

Any further rain forecast could raise quality concerns and would likely delay farmer selling, especially if quality comes into question. The appreciating peso also acts as a stimulus for farmers to sell at harvest, as converting the crop to USD is viewed as a better return than holding grain unsold (a significant change in Argentina economics).

FOB prices are down for malting barley and up slightly for feed. Buyers from China and South American continue to express interest but bids remain at lower prices (e.g., USD 5-10 lower). Still without farmer selling, the trade is limited in their ability to transact, for the time being.