Jan 23, 2023

Basis Commodities – Australian Hay Update – Monday 23rd January 2023

With the 2022/23 growing and baling production behind us, Australia now focuses on exporting what fodder was produced this season. Many regions within the country have suffered greatly due to flooding and the eastern hay crop has been removed from the balance sheet for exportable quality. Much of this year’s exportable crop will leave from Western Australia through Fremantle port with lower grades available through South Australia via Adelaide port.

Total production is estimated to be 11.2 million metric tonnes of fodder this season with only approximately 900,000 metric tonnes available to meet export grade. This is due to the untimely rain received in the eastern and southern states. Much of eastern Australia’s domestic demand this year will be serviced by last season’s hay as many growers decided to take advantage of high wheat and barley prices, therefore did not plant oats for hay production.

The demographics of feedlots as well as the human population is greater in the eastern states of Australia, while in South Australia and Western Australia, most of the oaten hay and other folder types are grown specifically for the export market as there is not a large domestic demand.

Ocean freight for the first quarter of 2023 has seen some relief with shipping lines either holding rates as they are or passing on small reductions. Unfortunately, this does not translate into closing the gap between the European and Australian competition for fodder into the Middle East.

With China resuming normal activity and moving towards herd immunity, away from a zero covid policy, it is expected that the world economy will recover and ocean freight pricing will follow with greater economies of scale and better rates.

The Australian Dollar has appreciated against the USD over the last six weeks and rests at .7000. This level is widely considered good for both importers and exporters within Australia.

Despite the challenging growing season, Australia is still in a good position to support the Middle Eastern market with quality oaten hay for the dairy and equine industries.

Basis Commodities work closely with Balco Australia to export Australian hay into the Middle East. For more information on Balco Australia and its operations, watch this short 1.41 minute video.

Importers are encouraged to speak with Basis Commodities about their requirements so a profile can be created to program deliveries without disruption with Balco Australia.

Please contact Nader Hassan or Steven Foote, who are available to support any fodder needs for the season.

Steven Foote
Sydney, Australia
M: 0408 308 908
E: steven@basiscommodities.com

Nader Hassan
Dubai, UAE
M: +971566915688
E: nader@basiscommodities.com

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The post Basis Commodities – Australian Hay Update – Monday 23rd January 2023 appeared first on Basis Commodities.

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Basis Commodities expands service offering to soybeans.

18 Apr, 2024

In late 2023, Basis Commodities successfully executed its first shipment of premium non genetically modified soybeans from Romania to Egypt, via two small vessels. Basis has many years of experience managing trade flows and relationships within the Middle East and we were pleased when the opportunity to add a new product – Soybeans – arose out of discussions with our suppliers in Romania and buyers in Egypt. To ensure the safe arrival of the produce, the company worked with several parties to facilitate the execution of this new flow for the company including managing due diligence, testing, insurance and contract execution. Soybeans are a primary source of protein and edible oil, making them essential for human nutrition. The largest producers of soybeans in the world are the United States, Brazil, and Argentina. These countries account for most of the global soybean production. Ukraine is the leading exporter of soybeans in Europe. However, Romania is seeing growth in this market after a long hiatus. This growth can be attributed to various factors including increased demand for soybeans globally, improvements in agricultural technology, and favourable climatic conditions for soybean cultivation in Romania. Egypt is among the top importers of soybeans in the world. The country imports large quantities of soybean, primarily for the production of soybean meal, a key ingredient in animal feed formulations. The country's growing population and expanding livestock sector contribute to the increasing demand for soybeans as a source of protein-rich feed. Basis Commodities General Manager in Dubai, Nader Ahmed said assisting companies making connections in the movement of soft commodities is a speciality of the company “we are committed to fostering international trade partnerships and promoting the exchange of quality agricultural products in the Middle East” and “We’re proud to have played a role in bringing premium soybeans into Egypts market”. For more information on how Basis Commodities and assist your business, reach out to the team on the details below