May 24, 2007

Australia's ABB Grain eyes some malting barley inquiries
 

ABB Grain Ltd. has seen some cautious interest in South Australian barley, with some buying inquiries for malting grade, despite maltsters still being nervous about high prices, Group Marketing Manager Gary Spiel said Thursday.

Buyers, including those for feed grade, are examining different ways of getting through until northern hemisphere crops become available, but new crop supply and demand looks tight, he said in a statement.

While the Australian dollar has weakened a little, high ocean freight rates have not, although there have been signs Panamax tonnage in the Pacific is building, which could create some downward movement, he said.

The Indian monsoon season, which is near, could also weigh on freight rates a touch, as it could become harder to load or discharge many cargoes, he said while announcing ABB Grain's current gross estimates for South Australian 2006/07 barley pools, which will be unchanged.

As a result, the No. 1 feed pool estimate return remains at A$246/tonne (US$202.221/tonne), No. 1 malting pool A$338/tonne, No. 2 feed pool A$229/tonne, No. 2 malting pool A$333-338/tonne, No. 3 feed A$171/tonne and No. 3 malting A$258/tonne.