Turkey purchased Barley at a tender at a price $5 / ton higher than two weeks ago

Yesterday, the Turkish TMO agency purchased 260 thousand tons of feed barley at the next tender for delivery in October at an average price of C 304.79/ton CFR, which is 4 4.79/ton higher than the purchase price at the previous tender on September 7 and 1 15/ton at the tender on August 20.

Turkey is actively buying barley against the background of a decrease in its own production and rather low prices for Black Sea barley, which remain 5 5-10/ton lower than for feed corn, and 2 20-25/ton lower than for feed wheat.

After the cancellation of sending about 400 thousand tons of barley to China, there was an oversupply of barley in Ukraine. Therefore, some traders stopped buying barley, which led to a decrease in export demand and prices.

However, Ukraine actively exports barley and has already shipped 3.23 million tons, which is 22% higher than last year's pace. Another 400 thousand tons are nominated for shipment in the near future. Ukraine is expected to export 5-5.5 million tons of barley in my 2021/22, compared to 4.2 million tons in the previous season.

Purchase prices for barley in Ukrainian ports for the week increased to 7400-7550 UAH/ton or 240-247 / / ton against the background of a decrease in supply volumes and rising prices for wheat and corn. Some producers postpone the sale of barley until spring, so it will be difficult for traders to purchase large quantities necessary for export. The recorded increase in demand for Ukrainian barley from Chinese buyers has not yet affected purchase prices.

In Russia, as of September 20, 17.8 million tons of barley were threshed from 7.4 million hectares or 93% of the area. A decrease in the harvest compared to last year by 3 million tons will lead to a decrease in barley exports in the current season.

The barley market remains under pressure from low demand from China and Saudi Arabia, but reduced supply will force buyers to step up purchases in the coming months.