Turkish tender results to support barley prices
Barley prices in Ukraine remain low due to a sharp decline in demand from exporters, who were refused by Chinese buyers from the previously contracted 400 thousand tons of Ukrainian barley for delivery in the 4th quarter. Importers paid compensation to traders, but refused to ship due to a significant drop in pork prices in China and low demand for feed grain, as well as logistics problems in Chinese ports.
Purchase prices for barley in Ukrainian ports decreased by 200-300 UAH/ton to 7100-7400 UAH/ton or 2 235-245/ton, but traders are almost not interested in Barley against the background of the lack of export demand and significant reserves.
The decline in global barley production this season will be offset by an increase in the corn crop, but after the publication of the updated USDA balance sheet and the likely reduction in forecasts for the barley harvest in Canada, the market may become more active.
The Turkish agency TMO held a tender for the purchase of feed barley, which will support the prices of Black Sea barley. The tender purchased 245 thousand tons of feed barley for delivery in September – October at an average price of C 300/ton CFR, which is 1 10-11/ton higher than at the previous tender on August 20, when TMO purchased 270 thousand tons of barley.
Saudi Arabia, the world's largest importer of barley, usually also holds a large tender for the purchase of barley in September, which becomes the main marker for the market and significantly affects prices.
The last time the grain operator of Saudi Arabia (SAGO) purchased 660 thousand tons of barley at a tender on January 25 at a price of C 277.8/ton C&F, which is 4 43/ton higher than the purchase price of the previous tender on September 18, 2020. On it, SAGO purchased 540 thousand tons of feed barley for delivery in November – December at an average price of C 225.34/ton C&F, which is 1 14/ton higher than the price of the July purchase, which led to an increase in barley prices in Ukraine a year ago.
