Barley Prices Drop as Northern Harvest Accelerates and Southern Rain Boosts Crops

Barley prices in Australia have dropped by up to $10 per tonne as new-crop volume begins to enter the northern market, while patchy rain in the south supports yield prospects. In southern Queensland, new-crop wheat is still at least two weeks away, and nearby wheat values in the north have only slightly decreased as traders report significant volume moving north. Export demand is sustaining wheat prices, but barley is seeing less support as southern growers clear out storages ahead of harvest.

The northern harvest is progressing rapidly due to dry weather, with up to three-quarters of some barley crops already harvested in the Maranoa region. Quality remains high, with test weights exceeding the minimum required for BAR1 and yields around 2.5-3 tonnes per hectare. Growers in the Maranoa are selling barley off the header at around $370 per tonne on farm, which translates to approximately $420 per tonne delivered to the Downs, factoring in high diesel prices.

In southern Australia, recent rains of 5-15mm have provided a boost to crops in South Australia and Victoria, with more rain expected. Horsham-based Mygrain managing director Andy Brown noted that the rain will help finish off the crops, while Victoria has experienced mild weather easing the crops into a gentle finish. Barley yields in the Wimmera could reach up to 10 tonnes per hectare, with the harvest expected to start in about three weeks.

Traders report that consumers are aware of the limited supply in the north and are looking to secure November supply from further afield. The demand for wheat in the domestic feedgrain market remains strong, primarily from feedlots, while barley yields and prices continue to be influenced by regional weather conditions and export demand.