Australia: Malting barley price levels steady as farmers are waiting for crop development

Despite the improving barley crop situation in Australia, liquidity has not increased as farmers appear to be waiting for crop development to advance further. As a result, price levels are steady for malting barley, and in the short-term, demand for feed barley is supporting prices slightly, RMI Analytics reported.

From a domestic feed demand perspective, the recent rains are expected to repair pasture conditions but this will take a period of time, and in the meantime, feeder demand for grain continues. The result is some support for feed barley values which is further influenced by the Chinese shift to a greater proportion of feed barley demand, as part of their considerable barley exports.

Eventually, the improved barley crop conditions, in the face of a weak global demand, could weigh on prices, for now price action is steady, the analysts said.