Barley prices in Ukraine continue to fall

The suspension of export purchases of grain crops in Black Sea ports by some international traders due to shelling and damage to grain terminals and ships entering for loading led to a sharp drop in grain prices.

 

At the same time, the purchase prices for feed barley were the most affected, falling by 400-500 UAH/t to 9,000-9,100 UAH/t or $183-188/t with delivery to Black Sea ports.

 

Prices at domestic elevators fell even more - by 600-1000 UAH/t to 7500-8000 UAH/t EXW against the background of an increase in supply at elevators, as farmers are not ready to export products to ports.

 

Prices for corn and barley on the Paris stock exchange continue to rise amid a decline in the harvest forecast in France and a possible restriction on grain supplies from the Black Sea ports of the Russian Federation and Ukraine.

  

August corn futures on the Euronext Paris exchange rose 5% over the week to €243.75/t or $278.8/t, supporting barley prices.

 

According to Agritel, in France, in two days, feed barley prices increased by €5/t to €205/t or $234/t FOB Rouen, and spring malting barley - by €14/t to €236/t FOB Cray (although the premium for malting barley compared to feed barley prices decreased from €22 to €21/t).

 

Rising prices for European barley will support demand for cheap Ukrainian barley, but the increase in freight costs and insurance for the risks of entry into Ukraine's Black Sea ports is currently offsetting this growth, so traders continue to lower prices.

 

Processors have begun to actively purchase feed barley at UAH 6,500-7,500/t with delivery to the factory, but farmers are still holding back sales in anticipation of a recovery in export demand.