Prices for new crop barley are still lower than for the old crop

In Ukraine, buyers have already begun to name the first price indicators for the new harvest grain, which shape producers' expectations, according to analysts from the PUSK agricultural cooperative, created within the framework of the All-Ukrainian Agrarian Council.

 

The asking price for standard quality barley is $205-207/t, while the price for certified barley for China is $210-211/t. Theoretically, prices for the new crop could still increase by a few dollars, but no significant changes should be expected in the coming months, since active sales will begin in April-May, analysts believe.

 

At the same time, prices for old-crop barley are $217-222/t or UAH 10,800-11,100/t and have remained relatively stable for about two months, despite an increase in prices for feed wheat and corn by $3-4/t to $212 and $214/t with delivery to Black Sea ports against the backdrop of the war in Iran.

 

This indicates subdued demand, especially from the Middle East, where traffic through the Strait of Hormuz is currently blocked. Market participants are not ready to raise prices, so in the next 1–1.5 months, prices for old-crop barley will also not change significantly.

The market is under the influence of another tender in Turkey , which supports world prices. According to preliminary estimates, more than 200 thousand tons of barley will be purchased there for delivery in March-May, which will significantly affect the balance of supply and demand in the Black Sea region.

 

According to European traders, the Jordanian state agency MIT purchased 50,000 tons of feed barley of any origin from Ameropa in an international tender on March 18 for delivery in the first half of July at a price of $260/ton C&F. In this tender, barley was offered by Bunge ($263.48/ton C&F), Olam ($264.24/ton C&F), Cargill ($261.65/ton C&F), СHS ($264.48/ton C&F), COFCO ($265/ton C&F) and Dreyfus ($265.5/ton C&F).

 

The rather low purchase price indicates a rather restrained demand for barley from major importers.