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ABB lifts feed barley pool estimate

Supplier News

Australian agribusiness ABB Grain has lifted its No. 2 feed barley pool estimate by $5/tonne, taking the current estimate to $190 – 200/t (FOB).  

ABB’s pooled grain business unit manager Anthony Fitzgerald said ABB had increased its pool estimate following a positive feed sales strategy.  

“We’re obviously pleased to be able to offer growers a higher pool estimate,” said Mr Fitzgerald. “We’re able to do this following a positive sales program supported by an early shipping schedule.  

“We’ve also been assisted by favourable currency movements and the market has stabilised some-what as well. Having said that, the general market still remains fairly flat due to the world feed grain situation.  

“End users continue to be well supplied with feed grain and this will likely be the limiting factor for any further significant upside.  

“Our No. 2 feed pool remains open so growers looking for a pooling alternative with a secure grain marketer can consider taking advantage of our price lift.  

“At this stage ABB also has a No. 2 malt pool ($210-$220 FOB) and No. 1 wheat pool ($315-$325 FOB) open for grower deliveries. The current estimates remain unchanged in these pools however the volatile markets could see these pools shut at any time to preserve grower equity.”  

Growers delivering to any of ABB’s pool have three payment alternatives: 

  • Harvest Payment (HP) - This alternative provides a payment up front following delivery with two residual payments. Income is taxable at the time of payment. 
  • Quarterly Distribution (QD) - This alternative offers quarterly distributions, providing taxable income over two financial years. 
  • Single Distribution (SD) - This alternative provides one distribution at pool finalisation. Taxable income is deferred until this single, final distribution. Additional interest is paid on retained funds. 
All ABB pool payment alternatives are available for F1 and F2 grades with the Harvest Payment and Quarterly Distribution payment alternatives available for F3 and F4.

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