AWB is holding the estimated pool returns (EPRs) for its 2009/10 season malting barley pool steady, although EPRs for its feed barley pool have been revised down by $7 a tonne.
AWB General Manager Commodities Mitch Morison said the story for feed barley was not positive, with deterioration in domestic and export feed barley markets in the order of $10 per tonne over recent weeks.
“A number market factors are pressuring barley prices, including more than adequate global supplies, large export supplies in Australia, a strong Australian dollar and more recently, stronger ocean freight rates, ” Mr Morison said.
“We are also seeing downward pressure through local exporters who are discounting FOB prices in order to meet shipping commitments held in the market.
“Unfortunately the outlook for coming months suggests that barley prices will remain under pressure, as there are simply no issues appearing in the market that would encourage prices.
“Our barley pool program has benefited from business already completed and we have participated in domestic and export opportunities that support estimated returns. That said, our pool is not yet fully priced and may be subject to further revision.
“The good news is that our pool remains ahead of the prevailing cash prices for barley. Our sales and hedging programs are producing benefits from key customers in north Asia; it’s very clear that at a time of abundant supply and deteriorating prices, these strong customer relationships provide a clear advantage,” Mr Morison said.
AWB’s barley pool EPRs are now: F1 $176/t, F2 $166/t, BA1 $269/t, GA1 $269/t, BU1 $259/t, VL1 $259/t (EPRs are FOB, excl GST).
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