World: Barley prices have jumped to decade highs as a result of sharply lower exportable supplies in Australia, USDA said

Short crops around the world this year, combined with strengthening demand, are shrinking global grain stocks and causing prices to soar to the highest levels in a decade, USDA stated in its Grain Report on November 13th.

Wheat prices have climbed as exportable supplies are sharply down in key Northern Hemisphere exporters such as the United States, Black Sea region, and the European Union. This tightness has been exacerbated by a severe crop shortfall in Australia and strong import demand in India.

Barley prices have also jumped to decade highs as a result of sharply lower exportable supplies in Australia--the largest exporter the past 3 years--as well as strengthening feed demand in light of poor wheat crops.

Australia barley export in 2006/2007 is lowered by USDA by 300,000 tons to 2.7 million as production is expected to fall to less than half last year’s level.

Russia barley export in 2006/2007 is raised by USDA by 300,000 tons to 2.5 million on higher production and less competition from Ukraine.

Ukraine barley export in 2006/2007 is lowered by USDA by 500,000 tons to 4.7 million as government export policy has reduced shipments in recent months.