China has already contracted about 600 thousand tons of Australian barley

China has already contracted about 600 thousand tons of barley from Australia after the abolition of anti-dumping duties on Australian grain, Reuters reported.

According to traders, importers have already purchased 10 cargoes of Australian barley, both malting and forage, although grain volumes are currently quite limited in Australia. However, this volume is expected to increase significantly, especially as the new grain harvest in Australia approaches.

It is also reported that of the latest purchases, 2-3 batches were malting barley, sold at a price of about $325 per ton C&F, and 7-8 batches were feed grain at a price of about $277-280 per ton 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 corn substitute in animal feed due to recent heavy rains in China, which damaged part of the local crop and pushed prices up. In addition, the war in Ukraine led to interruptions in the supply of Ukrainian grain to China. In total, it is expected that about 20 cargoes with Australian barley will be sent to China in the next 2-3 months.

Recall that on August 5, China canceled the duty on imports of Australian barley in the amount of 80.5%, which had been in effect for three years.