Australia: 2006/07 barley pools closed, new pools opened

ABB Grain has closed its 2006/07 No.2 malting and feed barley pools, with a No.3 pool open to receive late deliveries or transfers of warehoused grain, according to company’s news room, April 2.

The No.2 pools closed with gross indicators of $333-$338/t for malting 1 barley and AU$229/t for feed 1 barley. The No.1 pools, which closed on 24 January 2007, have current gross pool indicators of AU$338/t for malting 1 barley and AU$246/t for feed 1 barley.
ABB’s executive manager group marketing, Gary Spiel, said the No. 2 pools were closed to protect the equity of growers who had delivered into them, in line with recent market conditions and expectations.

“What we are seeing at the moment is an expected return to normal production globally, that will see prices coming off. This is likely to occur in the absence of significant adverse weather conditions,” Mr Spiel said.

“New crop northern hemisphere prices are being quoted at a discount to old crop prices, a trend which is also becoming evident in the domestic market. With the potential on-set of normal seasonal rains we may see prices start to decline.

“The recent increase in the exchange rate – today hitting its highest level in 10 years of AUD/USD 0.8135 – has also had an impact on grain prices and this is reflected in our No.3 pool indicators.

“ABB is focused on generating the best possible result for growers. With this current activity in the market, closing the No.2 pools is important in maximising the returns of those who participated in them.”

Mr Spiel said that No.3 pools were now available for growers with remaining grain to market. The No.3 gross pool indicators are AU$258/t for malting 1 barley and AU$171/t for feed 1 barley, with a first advance of AU$190/t malting 1 barley and AU$125/t feed 1 barley.

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