May 9, 2007

Australia's ABB Grain eyes barley market in the Middle East

Australia's ABB Grain Ltd is aiming for feed barley market in the Middle East while demand from China for malting grade has decreased, as Chinese buyers are "on holidays" and refusing to buy at current prices.

Gary Spiel, ABB Grain's general manager for marketing, said in a statement, that the continued strength of the Australian dollar and the rising costs of shipping freights which shoot to 30-month high has been hampering its sights in the Middle East market.

On malting grade sales, he said Chinese buyers might have covered their needs through to harvesting of Northern Hemisphere crops.

Spiel said ABB, which dominates exports from southeast Australia, will explore all opportunities for malting barley sales in coming months.

He was commenting while announcing ABB Grain will hold unchanged its current gross estimates for South Australian 2006-07 barley pools.

As a result, the No. 1 feed pool estimate return remains A$246 a metric ton, No. 1 malting pool A$338/ton, No. 2 feed pool A$229, No. 2 malting pool A$333-A$338, No. 3 feed A$171 and No. 3 malting A$258/ton.