Barley prices in Ukraine continue to fall, but will be supported by low yields and rainy weather

Barley purchase prices in Ukraine continue to decline as the winter barley harvest in the south accelerates (and data on high yields) and export demand significantly decreases.

Over the week, export demand prices for feed barley in Ukraine fell by another 200–300 UAH/t to 9,300–9,600 UAH/t or $183–190/t with delivery to Black Sea ports.

The price drop will allow traders to increase export sales in the near future, which will increase demand, but the rainy weather forecast for the next 7 days may delay the harvesting and delivery of grain to ports.

The heat that covered Ukraine accelerated the ripening and harvesting of winter barley simultaneously in the south and west of the country, but the yield in the western regions due to the spring rainfall deficit turned out to be much lower than last year, which will also lead to a decrease in supply and stabilization of feed barley prices next week.

The FranceAgriMer agency will release a report on the state of crops for June 29 tomorrow, in which it will analyze the impact of the heat on plants, which could also provide support for prices.

According to Agritel, in France, the premium for spring malting barley continues to increase and has already reached €32/t compared to feed barley prices. At the same time, prices for spring malting barley increased to €221/t FOB, while prices for winter feed barley for July delivery fell to €188.5/t.

In Ukraine, prices for spring malting barley of the old harvest remain at the level of 10,500-10,700 UAH/t with delivery to the plant, and processors will start offering prices for the new harvest later, as they are provided with raw materials for July and expect prices to decrease.