Australia: Improved crop prospects weigh on malting barley prices

Improved crop development is starting to weigh on Australia’s malting barley prices while feed values are steady, RMI Analytics said in their early August report.

Any domestic premium caused by hot/dry conditions has vanished, with farmers selling old crop grain, as the need to hold crop’24 as a hedge to crop’25, justified during hot/dry conditions, is no longer needed.

Rain has greatly improved pastures, and as a result the demand for grain has declined. This has shifted market leverage back into the hands of buyers, who generally have lower price targets as compared to the current price levels.

China’s appetite for Australian barley continues to trend higher, with nearly 90% of May shipments heading to China. In 2025, from the total of 4.4 mln tonnes barley exports, 3.2 mln tonnes have been destined for China (ca. 72%).