CLEAR Grain Exchange (CGX) was not expecting the announcement of Chinese tariffs on Australian barley to have a huge immediate impact on prices, mainly because the decision was expected and the price had fallen enough over the past two weeks to factor it in.
Before the initial announcement of potential tariffs two weeks ago, feed barley traded $300 per tonne FIS in Kwinana on Wednesday, May 6 through CGX.
However after the announcement of possible tariffs, public bids advertised by merchants dropped down to $225/t FIS at the beginning of last week.
Despite that, feed barley managed to trade $285/t in Esperance on Monday (May 11) and $270/t in Kwinana on Tuesday (May 12).
CGX managing director Nathan Cattle said barley values appeared to have fallen enough to compete into the eastern Damman port of Saudi Arabia, on paper at least, which should provide some floor to values at recent trade levels.
"Note recent trades on CGX have been $260 per tonne FIS Kwinana and we have had live bids above $250/t," Mr Cattle said.
"This is the price level I'm referring to rather than where public bids have been advertised to growers which are in the $240 range."
"Factors impacting prices going forward are the projected tight Australian grain stock situation ahead of the next harvest, and the northern hemisphere harvest coming online in the next few months."