Barley prices fall as growers weigh feed, storage and sale

South Australian feed barley sold for $210-$262 a tonne in late October, while malt barley fetched $210-$267 as the state’s bulk crop harvest began.

Feed barley traded at $210 at Thevenard and $262 at Outer Harbor; malt fetched $210 and $267, respectively. Both grades traded well below their levels 12 months earlier.

Farmers across South Australia face three choices as headers begin rolling into bulky crops:

• Sell grain in the current market.
• Store grain for a later sale.
• Retain grain for livestock feed.

What are South Australian barley prices doing?

The feed-barley range covered $52 a tonne; the malt range covered $57. At Outer Harbor, malt sold for $5 more than feed, while both grades traded at $210 at Thevenard.

That gap leaves gross grain returns under pressure. A larger harvest can raise tonnage without improving revenue per tonne, particularly when diesel and fertiliser prices remain elevated.

Good, consistent rainfall in the southern Mallee has put the Pocock family of Lampata Pastoral near Lameroo on track for record yields. This is a production forecast, not a harvested result.

“The only downside is that it's a pretty expensive crop, sadly, due to the price of diesel and fertiliser, which hurts more than anything,” Robert Pocock said.

Weak barley values and high diesel and fertiliser bills make a bigger crop less attractive at the farm gate.

How will Lampata handle a record crop?

Pocock said Lampata would largely keep its current approach: grain retention will follow the livestock enterprise’s needs rather than the size of the harvest. The family will hold back only what it requires and weigh the decision as a business matter.

Lampata already stores barley for stock feed. A larger harvest could increase the absolute quantity retained, but the proportion of grain held back is unlikely to change significantly.

Decisions will depend on grain prices, feed requirements and opportunities to finish lambs. Pasture remains the preferred feed whenever conditions allow because the Pococks try to keep sheep on grass unless they need grain.

The family enterprise includes Bruce and Gaylia, Robert and Courtney, their children Thomas, Hugo and Ruby, affectionately known as the “little farmers,” and two full-time employees.

Across roughly 6,800 hectares of owned and leased land, Lampata runs 2,900 Merino ewes in two flocks across two properties. A Poll Merino stud complements the commercial flock, while wheat, barley, lentils, cereal hay and vetch hay broaden the operation.

A 4,000-head containment feedlot lets Lampata manage ewes through drought, ease pressure on paddocks and finish some animals for market. Hay production supports livestock and can provide extra income when markets are favourable.

Lampata also reached a South Australian record of $512 for Merino ewe hoggets at the Lameroo offshears sale. That result illustrates the stronger income pull from sheep at a time when grain prices are mediocre.

Lampata will retain only the barley its livestock require, not a larger share because the harvest is bigger.

Why are sheep and barley markets diverging?

Commonwealth Bank agricultural economist Dennis Voznesenski said regional supply and demand conditions differ sharply. Feed barley in Queensland and northern New South Wales is trading at elevated prices.

A smaller winter crop in 2026 than in 2025 and very large cattle-on-feed numbers increased demand for feed grain and supported prices. Demand from grain-fed beef producers is expected to remain strong into 2027, supporting eastern Australia’s feed-grain market.

“China's and Korea's beef import quotas for Australia will reset on 1 January 2027, lowering tariffs, and creating more demand for grain-fed beef,” Voznesenski said.

The southern outlook is weaker. A very large, possibly record winter-crop harvest approaching in Victoria and South Australia has pushed feed-barley prices lower in recent months, and a large incoming wheat and feed-barley crop is limiting price upside.

Malt-barley demand and prices have been weak for the past two years, which Voznesenski linked to slowing global economic growth. He said the outlook could improve if broader economic conditions strengthened.

If the war between the United States and Iran ends this year and oil prices fall, he said consumer confidence and beer consumption could rise, making next calendar year more positive for malt demand and prices.

The quoted ranges are late-October price observations. Record yields, harvest size and 2027 demand remain forecasts, so they should not be read as harvested results or final annual averages.

Eastern feed grain may stay firm, but a large southern harvest and weak malt demand limit upside in South Australia and Victoria.