Saudi Arabia and the United Arab Emirates have bought 110,095 tonnes, or 96 per cent, of the 114,643t of feed barley Australia exported in November, according to the latest data from the Australian Bureau of Statistics (ABS).
Dry conditions in Brazil, a wet December in Argentina, mixed prospects for Australia’s sorghum crop, and uncertainty about China’s buying patterns in light of its trade dispute with the US are all affecting the rhythm of the global summer-crop market.
China’s State Reserve (SR) stocks of cotton, which reached an estimated 60 million bales in the spring of 2014, are currently estimated at just under 13 million bales, according to the latest report from the United States Department of Agriculture (USDA).
Peter McMeekin this week comments on the rhetoric of shipments of US soybeans to China, some Letter of Credit troubles with North African trade and reports excellent trade cooperation front-ending China’s barley business with Australia, amid reports of superlative malting quality.
Tensions continue to simmer in the Black Sea region after Russia seized three Ukrainian naval vessels. At this stage, disruptions to the movement of grain have been minimal, but any escalation of the standoff could have much wider ramifications.
Export figures totaling 99,233 tonnes for Australian barley and sorghum in September show a steep drop from August, when a total of 268,722t was shipped, according to the latest data available from the Australian Bureau of Statistics (ABS).
Grain received from Western Australia’s harvest has more than doubled in the past week with receivals of 2.3 million tonnes (Mt) taking its intake to date to 4.86Mt, or 32 per cent of expected deliveries, according to bulk handler CBH Group’s latest harvest report.
The Queensland and New South Wales is hoping recent rain will bolster prospects for the sorghum crop now being planted, which holds potential to price itself into feed rations from March onwards.
China’s decision to launch an investigation into companies’ pricing of Australian barley doesn’t alter fundamentals which remain strong, though cash market prices meantime have fallen.
Peter McMeekin this week writes about the recent barley sale to Saudi Arabia, the major adjustment China made to its multi-year corn crop numbers and salutes the end of WWI.