Australia: Good start to planting season boosts optimism for barley crop prospects
East-coast Australia barley planting is slowed by extreme wet conditions, Western Australia seeding is progressing very well (75-80% complete) and recent rains are getting the crop off to a good start, RMI Analytics said in their latest report late in May.
Dryness concerns are centered upon South Australia where rain is needed, local sources said.
The good start to planting season boosts optimism for new crop prospects. RMI Analytics’ barley production estimate is up 0.3 mln tonnes to 10.8 mln.
In terms of exports, reports indicate Saudi demand has slowed due to high prices which allows the industry to focus on the execution line-up. The trade is facing trucking constraints and weather delays in loading, leaving a lengthy line-up for the foreseeable future.
FOB price levels are higher across the board and reflect strong terminal handling fees.
The recent federal elections have brought about a change in government, but it is still too early to determine whether a shift in relations with China will follow (specifically in regard to the barley tariff).
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