IMPRESSIVE production volume is counterbalancing what was a significantly smaller barley plant area, as the early stages of harvest revs up in southern Queensland.
PentAG Nidera barley trader Tim Murray, Toowoomba, said this year’s harvest was shaping up to be “above expectations on yield and quality”.
Timely rain, particularly falling over the majority of the Western Downs, and limited frosts this year had both attributed to bumper crops, he said.
“We no doubt had a very dry September, but for the case of barley the critical rain of July/August had produced a crop better than average in past years,” Mr Murray said.
“It was pretty forgiving year for the winter farmer.”
Mr Murray expects Queensland barley production to hit between 250,000 and 300,000 tonnes – levels similar to the 2014 harvest – despite a dip in planting area. He put the trend away from cereals in the winter crop down to good summer sorghum prices on top of a big plant area last year for the grain across Queensland.
The resulting competitive chickpea prices this year compounded the decision to reduce barley planting areas.
Domestic demand for feed barley remains strong as livestock producers grapple with minimal feed in drought-affected parts of the state, Mr Murray said.
He anticipates this demand could peak at 500,000t in Queensland.
“Over the last two years the demand from feedlots has been largely due to the drought, but also because of the increasing demand for Australian beef, has meant barley demand has been strong,” Mr Murray said.
On Monday, Mr Murray said prices for feed barley were sitting at $255/t delivered to the Downs.
This compared to around $235-$240/t ex-farm for the October delivery court.
“This time last year we were looking at $265-$270 delivered to the Downs – it was probably a $10 premium to this time last year,” he said.
Mr Murray said he was now seeing growers who had forward sold their barley crops, “selling more now, because yields had been better than expected”.
