Dear CBH,
The remaining equity for the 2024/25 Barley Harvest Pool has now been distributed to participants.
In the Kwinana Zone, final equity values were $347.12 per tonne for MAX1 and $340.12 per tonne for BFD1, representing returns of $0.86 and $0.18 per tonne below the average cash price during the same marketing period for MAX1 and 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.
