Market Morsel: China is our friend, again on barley

Market Morsel

The data is in for the first full year of barley exports since China was back as a customer for Australian barley. There were some small exports in August, so we will preclude that data because the market was only available towards the end of that month. So it is the September to September data.

We always said, on here and on the AgWatchers Podcast that China would become our biggest buyer of barley as soon as they could access our market.

It has definitely transpired that way.

During the twelve months, Australia exported 8.6 mmt of barley, with 6.5 mmt being exported to China.

This has meant that 75% of all barley has been heading to China. We had beat this in 2018, when 77% went to China.

Our barley is heavily reliant on China, and there are arguments about whether this is good or bad. The reality is that the barley is going to the highest bidder, and that flows through to what it is possible to pay to growers.

What do you think, good or bad, about whether they are back in the market?