The purchase prices for barley in Ukraine are growing because of a shortage of offers
Due to the low yields of winter barley, especially in the South of Ukraine, and slower than in previous years, the harvest delivery of grain to ports has decreased, which led to a sharp price increase.
Traders to increase purchasing prices for barley, especially for fast deliveries at the port. Week prices at ports rose by 100-150 UAH/t to 5400-5550 UAH/t Strengthening of the dollar by 0.9% to 27.32/27, and 34 UAH/ USD also supported prices.
Low quality barley with nature within 530-550 g/l in the southern region heats of speculative demand on expectations later sell it at a higher price.
Currency purchase prices at ports remain at 163-164 $/t, while premium barley, certified by China, rose to $6-8/t. most buyers interested in barley for deliveries in China, while export demand for feed barley from other buyers remains low.
Export prices black sea barley last week has grown on average by 2-3 $/t after the world prices on forecasts of reduced production in Ukraine and Russia. The market awaits the outcome of the tender in Saudi Arabia, which will determine the new price trends on the background of reduction proposals.
State Agency Saudi Arabia SAGO this week launched a tender for the purchase of 720 thousand tons of feed barley for delivery in October and November, the results of which will be announced on Monday.
At the previous auction June SAGO contracted barley for delivery in August-September at a price of $199 USD. MT CIF volume of 1.1 million tonnes, which significantly exceeds the number which had planned to buy. According to the USDA forecast in 2020/21 MG Saudi Arabia, which is the world's largest importer of barley, will reduce its purchases to 7 million tons.
the Purchase price of Russian barley in the southern ports for the week rose by an average of 1.5-2%. For the first two weeks of the new season, Russia increased its exports of barley in comparison with last year almost doubled to 352 thousand tons. This confirms the high demand for Russian barley on the world market amid a decline in supplies from Ukraine.
