FEED BARLEY

PROGRAM

NOW OPEN

Gain Exposure to Global Grain Values

FEED BARLEY

The Australian barley market has undergone a massive shift over the last two months, with the re-entry of Chinese buying creating significant price opportunities. We estimate in excess of 2 million tonnes of barley has been sold to China since early August, with demand continuing today as China continues importing at a historically high pace with Australian barley in the box seat. 5.5 million tonnes of barley is expected to be exported to China this year.

Locally, dry conditions across Northern New South Wales and Southern Queensland are extending the Darling Downs feed market drawing arc into South Australia, Western Australia and Victoria, by truck, train and bulk vessel. This domestic demand will be consistent for the season and further underpin prices as the supply is drawn down and we move past the local harvest pressure period.

The recent pressure we have seen on prices has been driven by harvest pressure in the Northern NSW and Queensland markets, aggressive selling to China by WA traders, likely in response to grower selling in the West and some offers being shown out of Ukraine for minor tonnages. As expected, we are beginning to see that pressure overridden by China demand, as bids take control of the market and this price pressure wanes. We are seeing limited sellers into China market today, now that the WA trade have slowed down their aggressive selling. With the WA grower reasonably well sold pre harvest, we see the potential for prices to continue to recover and for the China market to move higher on price to continue to encourage the tonnage from the market.

Flexi Grain has export capacity allocated to barley and China market access in place. Currently feed barley is showing an export margin, but our current view is to continue to hold and engage selling over the next 4 – 8 weeks for first export sales with expected continuing demand from China. Eyre Peninsula early barley quality is showing very good FAQ (low spec Malt) potential, which should draw an additional premium into China. We will be targeting this space once we have done some independent quality tests to independently confirm suitability.

Flexi Grain has opened a Feed Barley program in addition to the current Malt Barley Program. Currency risk is a significant consideration for those holding grain. Flexi Grain will be actively managing this risk via currency hedging.

Currency risk will be actively managed via a hedging strategy during grain accumulation.

Accumulated grain may be repositioned (sold in one port zone and re-purchased in another port zone or swapped across port zones amongst the trade) into Port Zones where Flexi Grain has access to shipping capacity.

ESTIMATED GLOBAL VALUE TODAY

as of 13/11/2023

BAR1FAQ
FOB Value ($US/mt) Lucky Bay/Wallaroo $252$257
Port Equivalent Price Lucky Bay/Wallaroo (@ $0.64 US Cents)$335$342

HOW TO PARTICIPATE

Growers wanting to participate in this program can do so via the tonnage contract.

No estimated grower return will be published at this stage.
Final pricing will be dependent on future movements in global malt prices, exchange rates, and shipping costs. A management fee of $10/ tonne will be deducted from Grower Returns.

Accepted Varieties

BAR 1-2

Delivery Sites

Any T-Ports or Viterra site.

PAYMENT TERMS*

PAYMENT OPTION60%80%100%
OPTION A (DEFAULT)HARVEST ADVANCE 5 DAYS END OF WEEKJUNE 15thSEPTEMBER 25th
OPTION BHARVEST ADVANCE 5 DAYS END OF THE WEEKJULY 15thSEPTEMBER 25th
OPTION C100% Distribution of Final Grower EquityJULY 15thSEPTEMBER 25th
*Deferred Payment Terms available

DON’T MISS THE BOAT

CONTACT TO PARTICIPATE WITH TONNES

Call Sam Grieve to secure a tonnage contract or seek further details.

SAM GRIEVE

REGIONAL MANAGER, SA