AWB today announced that the majority of barley grades in 2011/12 barley pools have been reduced by between $5 - $15 a tonne due to a record barley crop in Argentina and a strong Australian dollar.

AWB’s Richard Williams said: “Argentina has been very aggressive in the Middle Eastern markets due to record barley crop and have been selling below current Australian barley values.   

“This combined with a strong Australian dollar is impacting on 2011/12 barley pool values,” Mr Williams said. 

“There is also reduced demand for feed barley in Australia and Europe as competitors are aggressively pricing feed wheat as a substitute for feed barley into the domestic and European markets.

“Barley malt premiums have been reduced by up to $15 a tonne as the Chinese market is focused on buying lower quality feed barley as the market is over supplied with quality malt barley.

“The global barley supply situation remains tight and will need good crops in Europe and the Black Sea region to supply the market for the second half of the year. 

“However we will be looking to target barley pool sales on possible weather induced price rallies during March – June.

“Continued foreign exchange volatility provides a good opportunity to increase our pool hedge cover which should support barley pool prices going forward,” Mr Williams said.

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	$260	Down $15	-	-	$250*	Down $5
BA2	$260	Unchanged	-	-	-	-
GA1	$260	Down $5	-	-	$250*	Down $5
GA2	$250	Down $10	-	-	-	-
BU1	$265	Down $5	-	-	$250*	Down $5
BU2	$250	Down $7	-	-	-	-
HIND	-	-	-	-	$245*	Down $8
F1	$250	Down $7	$240	Down $7	$240	Down $7
F2	-	-	$240	Down $2	$225	Unchanged

* Available only in Victoria

Media contact: Peter McBride 03 9268 7362 or 0417 662 451

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