Barley was undoubtedly one the success stories of 2017.
Although global grain prices largely remained in the dumps due to the burdensome supplies of wheat and feed grains, barley prices strengthened against wheat and corn, the major global feed grain.
Most of the strength in barley prices compared to other grains can be attributed to China’s insatiable appetite for barley imports, particularly Australian barley.
Twelve months ago, global barley prices were trading at a 10 to 12 per cent discount to global milling wheat prices but it’s now achieving milling wheat prices.
In dollar terms, world barley prices have appreciated by about $25 a tonne against world wheat prices in the past 12 months. This relationship has been mirrored in local barley prices.
