Australia: Barley prices level off after steady moving upward for some time

Since the completion of harvest, Australia’s barley prices had been steadily moving upward but have now levelled off, RMI Analytics reported earlier in February.

While shipments continue at a good pace, it has been quiet from China in terms of new business (explained in part by Chinese New Year’s). There is also on-going interest for smaller quantities of malting barley for Mexico and South America, which Australia has been quite successful in capturing.

The analysts believe at some stage Western Australia’s busy shipping program will reduce availability, and there are indications of Victoria being more competitive in FOB trade. Between Western Australia, southern New South Wales, and Victoria there is malting barley available.

Local farmer bids are firm (in AUD terms) in an effort to cover the on-going flow of exports. The Trump-tariff disruption has impacted the AUD, with wide moves this week (like other currencies). Uncertainty in the trade relations between US/China, are a concern to the future demands of China, should a trade war materially slow the Chinese economy.