Barley prices in Ukraine continue to decline following wheat and corn prices

Wheat prices continue to fall under the pressure of rising harvest forecasts in the Russian Federation, Australia and Canada, which, against the backdrop of low forward prices for corn, is leading to a decrease in prices for feed barley.

Over the week, export prices for barley in Ukraine decreased by another 200-300 UAH/t to 10,100-10,200 UAH/t or $208-210/t with delivery to Black Sea ports, while prices for feed wheat remain at $203-206/t, and for feed corn at $198-203/t.

Export demand for barley remains very low. Since the beginning of the season (as of September 9), Ukraine has exported only 654 thousand tons of barley, which is almost half the corresponding figure last year (1.12 million tons).

Recent international tenders for the purchase of feed barley indicate that we should not expect a decrease in demand prices in Ukraine, especially against the backdrop of low supply.

According to European traders, Jordan's state grain procurement agency MIT purchased 60,000 tons (out of the planned 120,000 tons) of feed barley of any origin from Bunge in an international tender on September 10, with delivery in the second half of November at a price of $262/ton C&F.

In this tender, Cargill offered barley at $267.74/t, Dreyfus at $266/t, Ameropa at $275/t, Olam at $269.5/t, Agrocorp at $276/t on a C&F basis.

Demand for malting barley in Ukraine is also declining due to a significant supply from farmers and a lack of free storage capacity at malting plants. Processors have stopped accepting barley and are offering farmers to postpone delivery dates under previously concluded agreements. However, farmers can sell barley as feed to obtain working capital, as happened last year.

In October - November, a new wave of export demand for feed barley can be expected, while malting plants will increase demand for brewing barley closer to December - January.