Australian barley prices drop as harvest progresses in north and south

Barley prices in Australia have dropped by up to $10 per tonne over the past week as new-crop volume begins to enter the northern market. Patchy rain in the south has helped underpin yield prospects, while export demand continues to support wheat prices more than barley. In the Maranoa region, up to three quarters of some barley crops have been harvested, with yields around 2.5-3 tonnes per hectare and test weights exceeding the minimum requirements for BAR1.

In northern New South Wales, the barley harvest is expected to start in earnest by the third week of October. Growers are selling barley off the header at around $370/t on farm, which equates to around $420/t delivered Downs. Northern wheat and barley crops grown with grain in mind have been cut for hay or silage, or grazed out, due to dry weather. Brendon Warnock of AgVantage Commodities noted that the $20 premium for wheat over barley is expected to be sustained because of less wheat being around.

Meanwhile, crops in parts of South Australia and Victoria have received 5-15mm of rain in the past day or two, with more forecasted. Andy Brown of Mygrain said this rain will finish off the crops in those regions. In Victoria, barley yields could reach 10t/ha in the Wimmera and 6-7t/ha in the Mallee, with the harvest expected to start on canola in about three weeks.

Finding local homes for Victorian barley has become a challenge, with some making its way to Queensland consumers despite expensive diesel. Wheat for bulk export out of Victoria is still being accumulated to roll the market into new-crop, as consumers are looking at how big this crop is going to be and they’re not in a rush.