Barley prices on upward trajectory
June 29, 2017
Local feed barley has increased from the harvest lows with low farm gate values, shipping commitments, end user demand, dry start to the planting program, deferring income and lack of sellers all contributing to the price appreciation of what was Australia’s record barley crop. Carryout into 17/18 is expected to be significant however current market values would suggest otherwise.
In the first half of the year barley has commanded its fair share of export capacity with China capturing the bulk of the trade. Unfortunately the uplift in prices over the past 6 weeks has not pushed through to the China consumer hence it's likely that little new business will come from Australia as northern hemisphere production comes online in Q3 and Q4.