March 14, 2007

Australia ABB Grain holds feed barley price; global market eases
 

South Australia state-based ABB Grain Ltd. Wednesday held unchanged its estimated returns on pooled malt and feed barley exports, despite global feed prices easing.

Estimated gross returns for malting barley grown this marketing year ending Mar 31 remain at A$338/tonne (about US$265/tonne), with feed barley held unchanged at A$246/tonne.

Gary Spiel, the company's executive manager for marketing, said global prices for feed barley had fallen from recent highs, partly due to increased exports from the Black Sea region.

"The global tightness for quality feed barley that we've been witnessing over the past few months has eased as a result of additional supply becoming available from Eastern Europe," Spiel said in a statement.

"The market has been stabilising since early February, but our pools have been able to capture good returns for growers despite the declining price trend," he added.

Estimated returns for malt barley have also been maintained even though many buyers are not back in the malt market following Lunar New Year celebrations, he said.

World supply and demand are quite stable, and the recent volatility emanating from Chinese commodity markets is not expected to have any significant impact on the global malting market, he added.