The price of barley falls with increased production forecasts
the international grains Council IGC, a new report has increased compared to the July balance forecast world production of barley in the season 2016/17 MG to 400 thousand tons to 144,9 million tons, against 148 million tons in the season 2015/16. Mainly due to the increase of harvest in Ukraine, Russia, Kazakhstan, Canada and Australia. However, this increase kompensiruet decrease of gross collection in Argentina and the EU.
improved forecasts of barley crop for the following countries:
- Russia by 0.5 million tons to 18.5 million tons, which will be 8.3% more than collected last year,
- Ukraine – 1 million tons to 9.8 million tons, which will be the record after the season 2009/2010 MG
- Kazakhstan by 0.5 million tons to 2.9 million tons, higher than last year's 2.7 million.
For EU countries relative to the previous report, the forecast is reduced by 2.3 million tonnes to 59.7 million tonnes, against last year to 60.8 million.
the Demand for Ukrainian barley is still low, which is reflected in purchase prices. So, if in the beginning of the season prices for feed barley was $140-145 delivered to the port, in July, they tumbled to a record $125. During the last weeks price dropped again from $138 to $131-133, but the rise in the dollar left hryvnia prices at the level 3900-3950 UAH/t with delivery to the port.