Purchase prices for barley in Ukraine stopped falling

2021-07-08 12:09:15
Machine translation
Purchase prices for barley in Ukraine stopped falling

 The growth of barley supplies against the background of the beginning of harvesting in the South led to a sharp collapse in purchase prices in Ukraine in two weeks from the levels of about 7000 UAH/ton (2 225-230/ton) to 5950-6050 UAH/ton (1 190-195/ton). High yields, as well as the need to replenish working capital, especially for farmers who suffered from drought last year, increase the supply of barley, which led to multi-kilometer queues in ports and falling purchase prices.

 

The cessation of rain and forecasts of hot and dry weather for the next 7-10 days will also help accelerate harvesting throughout the country and increase the supply of barley.

 

An additional factor of pressure on barley prices was the fall in purchase prices for wheat from the levels of about 2 220-225/ton to.205-210/ton for delivery to the port, and forward prices for corn to the level of 2 210-220/ton for delivery in October.

 

But the fall in prices attracted more buyers to the market, which, against the background of new international tenders and the weather in Russia, stopped the decline in purchase prices for barley.

 

This year, barley production will also increase in Russia, although according to the SovEcon agency, the yield in the south of Russia is close to a record, but in the Volga region and central regions, the yield of spring crops will be slightly lower than average due to dry conditions.

 

An additional factor of pressure on prices this season was the increase in the cost of sea freight by 50-80% due to rising oil prices and the resumption of international trade after the lockdown.

 

At the tender on July 7, The Ministry of trade and industry of Jordan purchased 60 thousand tons of barley for delivery in November at a price of 2 271.95/ton CFR, which turned out to be 1 18.95/ton more expensive compared to the purchase on March 30 for delivery in October.

 

On July 12, the Turkish grain agency (TMO) will hold an international tender for the purchase of 440 thousand tons of feed barley from July 29 to August 16, which will provide additional guidance on the price level for Black Sea barley for the next month.

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