AUSTRALIA exported tonnes of 106,592 tonnes of malting barley, 495,631t of feed barley and 251,452t of sorghum in August, according to the latest export date from the Australian Bureau of Statistics (ABS).

The malting figure is up 15 per cent from the 93,064t shipped in July, and sorghum is up 13pc from 221,986t shipped in the previous month, while the feed figure eased slightly from 497,953t.

On malting, Mexico on 61,939t was the biggest market for August by far, while shipments to Saudi Arabia lifted 100,000t from the July figure to consolidate it as the major destination by far on 322,659t.

On sorghum, China accounted for just about all the August-shipped tonnage, accounting for 241,013t of the total figure.

India shows up

After much anticipation and considerable bilateral negotiations, India appeared in August for the first time as a malting destination for Australian malting barley.

“The India shipment is notable, as it shows we can export malting barley to India with the new fumigation rules allowing phosphine use in place of the traditional methyl bromide requirement,” Flexi Grain pool manager Sam Roache said.

“This could become important into the new year, with a very tight all-grains scenario in India today and the potential to trigger a large import program for wheat and other grains if we see a weather issue unfold in early 2023.”

Otherwise, Mr Roache said August was another solid month for barley exports, and Australia remains on track for its second-largest barley export year.

He said significant second-tier demand from Middle East markets outside Saudi was supporting volume.

“Interruptions due to the Ukraine war and European drought continue to support Australian market share into the region.”

Asian demand has remained quiet for the last month’s of the 2021-22 marketing year,.

“We should see this change in the new year, with barley currently sitting relatively cheap versus both corn and feed wheat in the new-crop period, which is promoting demand now.

“The same can be said for competitiveness into traditional homes across the Middle East.”

Mr Roache said global feedgrain prices will likely find it hard to drop.

“That’s because of the combination of Argentinian weather going against corn plantings, and the war situation, along with tight EU stocks driven by the recent drought.

“The recent global feedgrains strength and softening Australian dollar have seen feed barley export margins grow and start to compete with wheat for allocation of shipping capacity.

“It’s all very friendly towards barley prices.”

Malting barley exports remain consistent, which Mr Roache said will run malt stocks to a very tight point, with little old- crop available to accumulate.

“Current malt spreads for new crop are very strong, with levels of $60 per tonne over feed trading in the market.

“This activity is likely driven by nervousness around new-crop quality, with continuing rains in Victoria and southern New South Wales worrying for the market.”

Additional road-fed loading facilities in Brisbane have boosted export capacity for sorghum, and Mr Roache said these are leading to a rundown of stocks ahead of new-crop wheat taking over on the stem from next month.

“Production prospects are excellent, with moisture and fallow areas available for sorghum through NSW and Queensland.

“This, coupled with seemingly insatiable demand from China, should see the production and export space remain strong for some time to come.”

 

MALTING	June	July	Aug	Tonnes
Ecuador	0	6000	4992	10992
India	0	0	483	483
Japan	22637	1251	0	23888
Mexico	0	30000	61939	91939
New Zealand	0	0	16000	16000
Peru	0	15900	13268	29168
Philippines	640	931	1403	2974
Singapore	4264	2841	5947	13052
South Korea	20417	397	669	21484
Thailand	2306	442	881	3629
Vietnam	2053	35302	1009	38364
TOTAL	52317	93064	106592	251973

Table 1: Australian malting barley exports for June, July and August 2022. Source: ABS

FEED	June	July	Aug	Tonnes
Hong Kong	0	12	0	12
India	323	670	0	993
Italy	0	0	8	8
Japan	135959	77000	61357	274316
Kuwait	0	67795	13819	81614
Macau	0	5	0	5
Malaysia	276		0	276
New Caledonia	0	197	392	589
New Zealand	0	6337	16000	22337
Papua New Guinea	50	0	0	50
Philippines	1721	10870	1869	14460
Qatar	0	0	52500	52500
Saudi Arabia	266132	222718	322659	811509
Singapore	2	2	1	5
South Korea	520	713	400	1634
Spain	0	10	0	10
Taiwan	2160	1283	801	4243
Thailand	0	20	0	20
UAE	9871	39322	17437	66629
Vietnam	66076	71000	8388	145464
TOTAL	483089	497953	495631	1476674

Table 2: Australian malting barley exports for June, July and August 2022. Source: ABS

SORGHUM	June	July	Aug	Tonnes
China	174950	200606	241013	616569
Japan	69500	21	21	69542
New Zealand	0	18075	0	18075
Philippines	2397	2739	3102	8238
Taiwan	4336	500	7316	12152
Tanzania	0	45	0	45
Vietnam	50	0	0	50
TOTAL	251233	221986	251452	724671

Table 3: Australian sorghum exports for June, July and August 2022. Source: ABS

 

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