Prices for barley in Ukraine continue to grow

As at 30 July in Ukraine with 98% of the planned areas, and produced 3 mln tonnes of winter barley with a yield of 3.5 t/ha, and 49% of the area is 1.6 mln t of spring barley with a yield of 2.08 t/ha.

the Low yields of spring barley and the delay of harvest caused a two-week heavy rainfall, increases in demand for barley from exporters. On the world market prices for wheat and barley rose sharply amid predictions of yield reduction in Europe, Ukraine and Russia. For the delay of the harvest in Russia and Ukraine there are still no data on the actual yield, therefore, it is impossible to predict the gross yield and to adjust the world balance sheets.

Traders continue to raise purchasing prices for Ukrainian barley, which during the week went up another 5-6 $/t and is trading at 200-203 $/t delivered to the port. Due to the depreciation of the hryvnia from 26.4 to 26.8 UAH/ USD, hryvnia prices increased by 250-300 UAH/t to 6250 - 6350 UAH/t

last season Russia was a good barley crop and offset the decline in supplies of barley from Ukraine, so the current probable reduction of barley production in Russia will increase tension in the global balance of supply and consumption.

In Russia through a high-rainfall harvesting spring barley is delayed. Yet threshed, only 11% of the area under spring and winter barley, which received 2.9 million tonnes of grain with the yield of 3.01 t/ha against a 3.74 t/ha in 2017.

next week's projected warm weather without precipitation, which will enhance yield of grain and filled the market with offers to sell. In addition, the high purchase price will also help increase the supply that stabilizes several barley prices.