The price of barley growing on the background of decreasing harvest in the EU and Ukraine

Prices on black sea barley gradually increase due to a reduction of offers from Ukraine amid strong demand from China and other importers.

On the basis FOB – Black sea prices rose to the highest since April of 2019 level of 205-210 $/MT FOB after the price of wheat and corn, as well as on the back of lower production forecasts for Ukraine in comparison with last year from 8.5 to 7.8 million tonnes and the EU from 63.2 to 62.3 million tons.

Russia, by contrast, plans to increase barley production from 20 million tonnes in 2019 to 22 million tons in 2020 as of October 2 in the country with 94.4% of the space or 8.1 million hectares harvested 21.7 million tonnes of barley at a yield of 2.7 t/ha.

against the background of growth of productivity and input prices Russia is intensifying the export of barley and as of the end of September has already supplied to foreign markets 2.1 million tons of barley, which is 64% higher than the previous season, and just 2020/21 MG plans to export 5 million tons of barley.

Ukraine slows down export, and in the last week shipped only 113 thousand tons of barley, and season with 2.9 million tonnes, which is 2% below the corresponding period last year.

the Purchase prices for barley in Ukrainian ports reach 6500-6700 UAH/t or 190-195 $/t, and certified for the China volumes, you can obtain an additional premium.

the Increase in the supply of corn of the new crop and a possible reduction in the price of wheat, caused by rainfall in the Northern hemisphere and the beginning of the harvest in Argentina and Australia, few will stop the growth of barley prices in the second half of the season they will be supported by strong demand.