10 April, 2005

Australian sellers have priced themselves out of the Chinese market, market analysts revealed on April 1. Their selection of malting barley from last summer's crop was too small to satisfy the usual domestic, Japanese, Korean, Taiwanese needs plus the large demand of China. So far sales to China totaled 250,000 – 350,000 tonnes of malting barley plus another 150,000 – 250,000 tonnes of lower grade or feed barley. That is less than Canada sold to China this year. Australian CIF prices are now in the high 220's (US $), which is uncompetitive vs. Canada and the EU. The remaining surplus is estimated at only 100,000 – 150,000 tons.

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