Purchasing prices on barley peaked in the beginning of the season

2020-07-21 12:07:11
Machine translation
Purchasing prices on barley peaked in the beginning of the season

the Growth of purchasing prices for feed barley in Ukraine begins to slow down against the backdrop of increasing sentences, as well as the results of the tender for purchase of barley in Saudi Arabia.

 

Traders for barley was waiting for the results of the tender in Saudi Arabia to adjust their purchase prices, and many expect a sharp rise in prices.

 

the State company for the purchase of grain in Saudi Arabia (SAGO) to tender July 17, bought 725тис. MT of feed barley with delivery from 1 October to 15 November at an average price of about 211,4 $/t C&F ports of the red sea, which is 12.6$/MT C&F is more expensive than it was bought a month ago.

 

In its previous tender on June 15, we acquired 1.08 million t of barley from 15 August to 15 September, paying on average 198,81$/t C&F, where the main supplier was the company Glencore, but in the last tender, the share of Glencore dropped to 50%.

Barley can be set arbitrary origin from Australia, the Black sea countries, EU, South America and the USA. Delivery from Canada continue to be excluded for long-standing political differences between Riyadh and Ottawa.

 

the rising cost of freight in comparison with June, and also the necessary cost of storage of the barley until October and November will enable traders to increase purchase prices for barley in Ukraine in connection with the increase in sales prices in Saudi Arabia, as prices at the ports have already reached 167-170$ / t, equivalent 207-210 $ / t C&F ports of the red sea.

 

 

Purchasing prices for feed barley increased by 50-100 UAH / t to 5470-5650 UAH/t with delivery to the port in recent days, but the main reason for the growth was the further devaluation of the hryvnia to the level of 27.61/27,63 UAH/$.

 

barley Yields in Ukraine were better than predicted earlier and as of July 16, has already removed 1.3 million hectares, or 54% of barley and harvested 4.6 million tons with an average yield of 3.54 t/ha, and the forecast of barley production at 8.6-9 million tonnes can be exceeded that have already reduced speculative demand for barley.

 

High demand for barley support procurement in China, but according to estimates by traders in August, the demand from China will decline, while prices for delivery to Saudi Arabia do not exceed current levels.

In Russia, as of 20 July, the barley throughout the areas of 1.1 million hectares or 13.9%, and produced 3.6 million tonnes with the average yield of 3,2 t/ha. and production forecast remains at around 20 million tonnes, the export forecast at 4-5 million tons.

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