Australia & China: China may absorb up to 7 mln tonnes of Australian barley this crop year
Barley shipments from Australia run at full steam, it is expected that 6.0 – 6.5 mln tonnes will have been exported by the end of June, H. M. Gauger GmbH said in their June report.
The outstanding principal destination is China, which may absorb 6 - 7 mln tonnes of the Australian surplus by the end of the crop year. China buys not only malting, but large amounts of feed barley as well. Feed barley at USD 195,-/200,- CIF Chinese ports is very competitive against other imported feeders and compares favourably as well to Chinese old maize stocks, of which 16 mln tonnes were sold since the beginning of government auctions. For Australian shippers the Chinese market is far more interesting than the Middle East. Because of the high quality crop malting barley premiums have shrunk to USD 3,-/6,- for FAQ, 8,- /10,- for Hindmarsh and 13,-/15,- for M1 barley.
In spite of the marvellous crop results barley compares negatively to the revenues of canola and pulses production. It is therefore anticipated that the acreage will drop by 5 - 10% this year. Planting progresses fast, about 70% are in the ground. Dryness has become worrisome in parts of Western and South Australia.
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