New procurement tenders to support the price of barley

this season, world barley prices rise after the price of wheat and corn in active demand, although the overall balance is almost unchanged from a year ago.

According to a November USDA report, barley production in the world reaches of 158, 38 million tons (156,89 million tonnes in November 2019), and ending stocks will be of 20.08 million tonnes(of 19.82 million tons in 2019).

For China import forecast is raised 1.2 million tons to 6.5 million tonnes, while to Iran has reduced by 0.5 million tonnes to 2.5 million tonnes and Saudi Arabia – 0.2 million tons to 7.3 million tons

strong demand from China has led to higher prices for barley in Ukraine with up to 175-180 210-215 $/t for deliveries to the port in October, November and accelerated the pace of exports, despite the decline in harvest.

this Year Ukraine has reduced barley production to 7.8 million tons, and exports will be reduced to 4-4,5 million tons compared with 5 million tonnes in 2019/20 Mr. This season is already exported 3,477 million tonnes of barley, which is 107 thousand tonnes higher than the corresponding figure last year.

the world's Main importer of barley is Saudi Arabia continues to actively purchase, and now buys mostly Russian and Australian barley.

Grain Agency Saudi Arabia SAGO purchased the tender 13 Nov 730 thousand tons (in terms of 720 thousand tons) of feed barley optional origin for delivery in January-February at an average price of 234,83 $/t C&F, which by 9.49 $/t higher than at the previous auction on September 18, when it was purchased 540 thousand tons of feed barley for delivery in November-December at an average price of 225,34 $/t C&F.

Russia this year increased barley production to 22 million tonnes, which has boosted exports. As at 16 Nov exported already 2.7 of the projected 5.5 million tonnes of barley, which was 66% higher than the corresponding figure 2019 More than 50% of this volume was shipped to Saudi Arabia.

Turkish news Agency TMO on 24 November, will hold a tender for the purchase of 155 thousand tons of feed barley and 350 thousand tons of maize, where there is likely to be acquired by the Russian barley.

Despite the growth in the demand for French barley from China, the exports of barley from the EU is only 3 million tonnes, which is 8% below last year's figure due to higher than black sea barley prices.

Recovery in barley production in Australia against the background of the prohibition of imports into China has dramatically increased its supply in Saudi Arabia and other Middle East countries, which traditionally bought Russian black sea barley. It will increase competition and stop is caused by a deficit of the growth of prices for Ukrainian barley.