China has already contracted about 600 thsd tonnes of barley from Australia after the anti-dumping duties on the Australian grain were canceled, Reuters reports.
According to traders, the importers have already purchased 10 cargos of Australian barley, both malting and feed, although the volumes of the grain are quite limited in Australia. It is expected that this volume will increase significantly, especially as the new grain harvest in Australia approaches.
It is also reported that the last purchases consisted of 2-3 batches of malting barley sold at the price of about $325 per tonne C&F, and 7-8 batches of feed grain at the price of about $277-280 per tonne C&F. Of the purchased batches, one cargo with Australian barley is already on its way to China.
Market operators also expect barley to be a highly sought-after substitute for corn in animal feed due to recent heavy rains in China that damaged some of the local crop and contributed to the price increase. In addition, the war in Ukraine has led to disruptions in the supply of Ukrainian grain to China. In general, it is expected that about 20 cargoes of Australian barley will be shipped to China in the next 2-3 months.
As a reminder, on August 5, China abolished the 80.5% duty on Australian barley imports, which had been in effect for three years.
Source: Apkinform