Flexi Grain Strategy Notes 10/10/23
No recent sales of Australian Barley to China following a very hectic few months post removal of tariffs, sees Barley prices ease. Chinses export demand fundamentals remain sound.
Global stocks to use positions amongst major wheat and barley exporters remain tight.
Global High Protein Wheat (13.0%+) and Malt Barley stocks are tight
Local cash spreads for H1 and Malt appear undervalued. Suggest holding.
Local cash bids for APW1 & BAR1 seem competitive
At the moment the quality profile and yields of the 2023/24 SA crop remains uncertain.
Consider protecting unsold grain from currency risk.
Concerns re state of the global economy is driving the direction of global markets – buyers buying hand to mouth.