Barley Prices Slip Below Wheat Despite Export Demand

Barley prices have been easing in recent weeks despite strength in wheat values. According to Bloomberg, new season barley slipped under $300 per tonne at Geelong this week, with other east coast markets following a similar trend.

This makes it good buying for those who are using feed grain, although there are costs in switching in intensive systems. For growers, it's not a great time to sell, as there is every chance the wheat/barley spread could narrow when export demand ramps up.

Australia produces an exportable surplus of barley, and as such the market is subject to international fluctuations in feed grains, along with local demand. Historically, barley has traded both sides of corn, depending on seasons and local demand.

When China imposed tariffs on Australian barley in 2020, the market immediately fell, losing around $70/t in a week. Feed wheat fell with it, as the supply of feed grain in general for local consumption had increased markedly.