Australia: Barley crop forecast increase not having negative impact on prices

The dramatic increase in Australia’s barley crop’24 (to 13 mln tonnes) is not having any negative impact on prices, which are higher across all regions, RMI Analytics said in their early March report.

In addition, ABARES also released a forecast for a 2% increase in barley prices for the crop’25 cycle, which aligns with the RMI Predictive Model, although RMI’s statistical view sees more price upside for malting barley over the next six months.

The strong pull from China is expected to continue, as evidenced by on-going interest for Feed/FAQ offers. The tariff war between the USA and China has the prospect to be supportive to Australian feed barley as US grain imports decline. However, the tariff war has potentially dire consequences for Chinese economic growth, experts warn.