WHEN news broke in May that China would be implementing tariffs of about 80 per cent on Australian barley as a result of its anti-dumping investigation, some were concerned barley prices would take a tumble this season.
At the time, Grain market analyst Malcolm Bartholomaeus said export barley prices would be most seriously affected if China reduced its consumption of feed barley in favour of corn or sorghum, creating a surplus in the global market.
"If China uses the same amount of barley as they do now all they're doing is buying from somewhere else, and we would then just have to find where the gaps are in other markets," Mr Bartholomaeus said.
China has long been the most common destination for Australian barley. We have to go back to 2012-13 to find a year where China did not buy less than 3.5 times as much barley as the next largest purchaser.
This week, malt barley was listed at a price of $235 a tonne delivered Adelaide, with Rabobank grains and oilseeds senior analyst Cheryl Kalisch Gordon saying it would continue to sell at a big discount to wheat "as long as China is out of the market".
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