|
Large Global Barley Production Drives Prices Down
17.09.2019 11:27 "Agro Perspectiva" (Kyiv) —
Barley harvest is largely complete for Northern Hemisphere countries. Crops for Canada, the European Union, Russia, and Ukraine are larger than a year ago, contributing to sharply higher global production for 2019/20, the largest since 2008/09. Harvest in the Southern Hemisphere countries, mainly Argentina and Australia, is still a few months away, although Australia’s prospects are lowered this month. Prospects of large exportable supplies have already driven export prices down 25 percent ($60 per ton) from a year ago. Note the high prices for Australia are likely a function of current crop expectations. Growth in import demand, nevertheless, is expected to be limited due to developments in the top importing countries. Saudi Arabia has been shifting away from feeding raw barley to using manufactured feed in feed rations to improve feed efficiency. China’s imports from its top supplier, Australia, have slowed down amid the ongoing antidumping investigation. Any growth in feed use in China will likely be constrained by animal losses from African Swine Fever. Saudi Arabia and China combined account for 60 percent of global barley imports. Moreover, abundant supplies of corn in the global market will also heighten competition in feed demand, as corn is priced much lower than feed barley and generally considered to be of higher energy value in feed rations.
Also available:
|
| |
|
|