Dear CBH,
The remaining equity for the 2024/25 Barley Harvest Pool has now been distributed to participants.
In the Esperance Zone, final equity values were $343.12 per tonne for MAX1 and $336.12 per tonne for BFD1. This represents a $0.43 above the average cash price for MAX1 and $0.12 below the cash price for BFD1 throughout the same marketing period for MAX1 & BFD1 respectively.
Barley receivals for the season were more than 30 per cent above the five-year average, with a higher proportion of malt delivered compared to previous years.
Trading margins were tight due to strong competition and limited grower liquidity post-harvest. International demand for Western Australian (WA) barley remained firm, and prices rallied after harvest. High levels of grower cash selling during harvest meant achieved prices were around $10/mt less than the BFD1 Pool return
To manage the sizable harvest and satisfy international demand, we adopted an accelerated sales strategy, which limited post-harvest sales and reduced returns.
While results were below target, the Marketing & Trading Structured Products team leveraged the following opportunities which worked well:
- Securing favorable foreign exchange levels in April amid trade uncertainty boosted returns.
- Targeting malt sales during harvest enabled available premiums to be captured and helped maintain a malt spread.
