Australia: Barley crop situation continues to improve

Australia�s barley crop�25 situation continues to improve with the arrival of rainfall, particularly in Victoria and South Australia, but with further moisture for Western Australia and eastern New South Wales as well. Subsoil moisture levels in Victoria and South Australia were depleted by the earlier dryness and the rain forecast over the next week will help repair soil moistures if the rain arrives, RMI Analytics said in their early July report.

The experts� barley crop�25 forecast for Australia remains at 13.3 mln tonnes, and the confidence level for good average yields and quality has been boosted by the recent improved conditions.

The increase in exports over crop�24 is dependent upon Chinese demand but from the supply-side, there is good potential for a 13+ mln tonnes crop. Feed demand is increasing in crop�25 as a direct result of the impacts from the earlier extreme dryness. With these improvements in demand (export and domestic), ending stocks forecast is lower for crop�25, making continued good weather quite critical.