Argentina: Both malting and feed barley export prices remain stable

Export prices for both Argentinean malting and feed barley remain stable, as farmer sales are limited while purchasing interest is targeting lower price levels, RMI Analytics said in their October report.

Interest in a small lot of crop�24 was difficult to source, indicating old crop trade is now complete. With a crop�25 need to export 2.2-2.5 mln tonnes outside South America, Argentina needs to capture Saudi or Chinese demand.

Farmer FAS prices have decreased, as the market anticipates heightened competition globally.

The government�s suspension of export duties up until a cap of USD7 bln in export sales prompted a quick response (the USD7 bln cap was reached in 3 days) from farmers, leading to the sale of 14 mln tonnes of soybeans and soy products. In contrast, the total barley under the non-duty agreement amounted to only 363 thousand tonnes. However, this may lead to a significant reduction in farmer selling, as their cash flow requirements are now met for the short to medium term.