The price of barley has increased to 1,5 year high
FAS USDA's July forecast a decline of barley production in the season 2017/18 to 138,5 million tons, compared with 148 million tonnes last season. Last week the international grains Council (IGC) took into account the possible reduction of harvest in the European Union, Australia and the USA because of excessively dry weather and lowered the forecast of world barley production to 138,1 million tons.
the Possible reduction in the supply of barley on the world market stimulates the growth of prices. This was confirmed by a tender in which Saudi Arabia bought 900 thousand tonnes of barley at a price that is transferred to the level of $180/t on the basis FOB Black sea.
Purchasing prices for feed barley have increased in Russia and Ukraine to the level of 170-175 $/t (FOB)
the Forecast of barley production in Russia remains at last year's level of 18 million tons, but experts expect an increase in exports from 3 to 3.6 million tonnes due to rising input prices.
In Ukraine, the gross yield will be less than last year and will amount to about 8.5 million tons On July 31, with 97% of the area collected 3.1 million tons of winter barley with a yield of 3.6 t/ha, and 69% of the area collected by 3.25 mln t of spring barley with an average yield of 29.5 q/ha. the Deterioration in the prospects of the harvest and exports have traders actively buy barley for the formation of export shipments.
During the week the price of Ukrainian feed barley for delivery in the port increased from 150 to 154-156 $/t or 4750-4850 UAH/ton.