Barley prices under pressure from falling demand reduction

2019-08-08 12:04:50
Machine translation
Barley prices under pressure from falling demand reduction

the Primary global buyer of barley - Saudi Arabia will reduce in 2019/20 MG its imports due to the large initial reserves and abundant precipitation in winter and spring, which allowed a long time to use the pastures and to reduce the consumption of forage.

 

estimates USDA, in the new season in Saudi Arabia will decrease compared to the previous MG, the consumption of barley for 10% to 7 million tonnes and its imports by 1.5 million tons to 7 million tons.

 

State operator SAGO, which is the main importer of the country, does not consider it necessary to keep large stocks of barley, given the situation on the world markets.

 

Now SAGO has purchased 1.7 million tonnes of barley of new crop with delivery in July-October, which is 46% lower than in the corresponding period last year.

 

the Increase in the volume of offerings of barley, caused by the recovery of production in Australia and the EU, against the background of reducing consumption in Saudi Arabia puts pressure on world prices, which in comparison with the previous season fell by 30% to 205-215 $/t CFR, which corresponds to 175-180 $/t FOB Black sea.

 

Ukraine will increase compared with the previous year, barley production is 13-14% from 7.6 to 8.6-8.7 million tons due to higher yields. But due to the fall in input prices, manufacturers will continue to reduce acreage under crop, which from year to year are reduced.

 

and the small demand from exporters, barley prices in Ukraine remain at 165-167 $/t at the port. To boost export to China in early July raised the price from 155 to 165 $/t CPT, however, once China began to buy more cheap French barley, the market remained under pressure from low demand.

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