Turkey purchased feed barley at a tender at a higher price than in September, which will support prices in Ukraine

In Ukraine, traders have intensified their purchases of barley amid a decline in supply from farmers, which is why ports are seeing a new wave of price increases, and the results of the tender in Turkey give hope for further growth in demand.

Over the week, export demand prices for feed barley in Ukraine increased by another 50-100 UAH/t to 10,300-10,400 UAH/t or $215-217/t with delivery to Black Sea ports, which corresponds to the maximum levels at the beginning of the season, but the increase in the dollar exchange rate against the hryvnia will continue to raise hryvnia prices.

Demand for malting barley in Ukraine remains quite low, so producers are actively selling barley as feed.

The increase in demand prices for feed wheat and corn by $1-2/t to levels of $209 and $206/t, respectively, also slightly supports barley prices.

The Turkish Grain Agency (TMA) held an international tender for the purchase of feed barley on October 30. According to preliminary data, 250 thousand tons were purchased, as planned, at a price of $252.8-265.6/ton CFR with delivery from November 10 to December 10, which exceeds the purchase prices in September ($248.9-257.57/ton CFR).

The winners of the tender were four companies, from which the following batches of barley were purchased:

Tarimex:

• 25 thousand tons at a price of $254.8/ton EXW Iskenderun
• 10 thousand tons at a price of $252.8/ton EXW Samsun
• 10 thousand tons at a price of $252.8/ton EXW Trabzon
• 5 thousand tons at a price of $252.8/ton EXW Giresun

Team Agro:

• 25 thousand tons at a price of $257.9/ton C&F Adana

Bunge:

• 25 thousand tons at a price of $258.7/ton C&F Bandırma
• 50 thousand tons at a price of $258.9/ton C&F Izmir
• 25 thousand tons at a price of $262.0/ton C&F Mersin
• 25 thousand tons at a price of $264.8/ton EXW Iskenderun

Yayla Agro

• 25 thousand tons at a price of $265.6/ton EXW Bandirma
• 25 thousand tons at a price of $263.3/ton EXW Tekirdag

It is worth recalling that corn prices remain at low levels, which will restrain the growth of feed crop prices in the future, so it makes sense to take advantage of the new wave of barley price increases and accelerate sales.