AWB today announced that barley grades in 2011/12 barley pools have been reduced by between $5 - $7 a tonne as global barley prices remain under pressure due to the higher than expected barley crop in Argentina and competitors aggressive selling into a number of barley export markets.

AWB’s Richard Williams said: “Argentina continues to target the Middle Eastern barley markets and Argentina barley exports into the Middle East have been the largest in a number years.”  
“The Argentina barley export program is replacing some Australian barley exports and therefore impacting on Australian barley prices overall,” Mr Williams said. 

“In addition, the Saudi Arabian barley market is well covered for the reminder of the old crop campaign and with the stabilisation of the Northern Hemisphere crop traders are aggressively selling into the Middle East and Persian Gulf before the upcoming harvest which is placing further pressure on barley values.
“Domestically the abundance of feed wheat on the east coast is also displacing barley in the domestic feed market.

“While barley prices remain under pressure the export program out of Australia remains solid and we expect Asia barley customers to come onto the market in the coming months which should provide some support to Australian barley prices,” Mr Williams said.
Mr Williams said: “China and Japan have been consistent buyers of feed and good quality Australian barley in the last 12 months and it is expected this will continue in coming months and with Australia’s freight advantage into these two markets we are well placed to service this demand.”

AWB’s 2011/12 barley estimated pool returns (EPRs) below:  

BARLEY: Estimated Pool Return 2011/12 AWB Pools ($/t FOB, excluding GST)
Grade	Western Australia		South Australia		East Coast
BA1	$253	Down $7	-	-	$243*	Down $7
BA2	$253	Down $7	-	-	-	-
GA1	$253	Down $7	-	-	$243*	Down $7
GA2	$245	Down $5	-	-	-	-
BU1	$258	Down $7	-	-	$243*	Down $7
BU2	$245	Down $5	-	-	-	-
HIND	-	-	-	-	$240*	Down $5
F1	$245	Down $5	$235	Down $5	$235	Down $5
F2	-	-	$235	Down $5	$220	Down $5

* Available only in Victoria
Media contact: Peter McBride 03 9268 7362 or 0417 662 451

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