Australia: ABB Grain released 2006/2007 season east coast pool details

ABB Grain Ltd released October 26 the details of its 2006/2007 season east coast pools reflecting the high value of Australian barley due to the drought conditions now being felt across much of the nation.

The port Estimated Silo Return (ESR) for feed barley for the east coast pool (that is, growers in Victoria, New South Wales and Queensland) has opened at $280/tonne, with the corresponding number for malting barley of $300t (figures in AU$ unless stated).

Prices for Newcastle and Brisbane are an extra $5/t for both malting and feed barley.

First advances for this season’s 2006/2007 east coast pool will be $220/t for malting barley and $196/t for feed barley.

ABB Grain managing director, Michael Iwaniw, said the pool prices reflected a very volatile market and emphasised that ABB retained the right to close any of its pools at any time.

“These prices reflect the very high values being placed on new season barley in Australia because of the drought – the east coast pool has highly competitive pricing, reflecting a realistic return to growers,” Mr Iwaniw said.

“We have approached the pricing of this pool in a way that makes it very easy for growers to understand.

“As this is a domestic focused pool, the return is being quoted at a port ESR level after all costs, except statutory levies and location differentials, have been deducted.”

For comparison, these port ESRs equate to an Estimated Gross Return (EGR) of $310/t for feed barley and $331/t for malting barley.