Australian barley prices fall to lowest level in more than four years

Barley prices in Australia have fallen to their lowest level since January 2022 amid weak demand and ample supply. Old-crop barley delivered to Melbourne dropped to AUD 323/t, which is AUD 33/t below AGP wheat prices.

According to agricultural consultant Colin Peace, growers are finding it increasingly difficult to secure buyers for both BAR1 feed barley and malting barley late in the season. New-crop BAR1 barley on a Victorian port basis fell another AUD 6/t over the week to AUD 286/t.

By comparison, APW wheat declined by only AUD 2/t to AUD 351/t, while non-GM canola remained unchanged at AUD 818/t. Barley’s discount to wheat is now among the widest seen over the past five years.

Demand from China has recovered strongly since trade restrictions were removed, with Australia exporting a record 8.7 mln tons of barley there in the last financial year. However, domestic supply continues to outpace demand, keeping prices under pressure.

Some growers had previously held barley in storage due to dry conditions in northern Australia, concerns over El Niño and barley’s position as the cheapest feed grain. However, weak buyer activity late in the season has intensified downward pressure on prices.

Tags: prices, Australia, barley