Barley Prices Rise in Ukraine Following Turkey’s Tender
A new phase of rising barley prices is being observed in Ukrainian ports. The main reason for this is the increased purchasing activity by traders amid a reduction in supply from farmers. At the same time, the results of a recent tender in Turkey provide grounds to expect further growth in demand for Ukrainian barley.
This is reported by AgroReview
Export Prices and Current Market Situation
Over the past week, the export demand prices for feed barley in Ukraine have increased by another 50–100 UAH/ton, reaching a level of 10,300–10,400 UAH/ton or 215–217 $/ton with delivery to the Black Sea ports. This corresponds to the maximum values at the beginning of the season, and further increases in the dollar exchange rate against the hryvnia may further raise prices in the national currency.
Demand for brewing barley in Ukraine remains low. As a result, producers are actively selling their barley as feed, which contributes to the formation of additional supply in the market.
Impact of International Tenders and Prices for Other Crops
Price increases are being observed not only for barley but also for other grains. Thus, prices for feed wheat and corn have risen by 1–2 $/ton, reaching levels of 209 $/ton and 206 $/ton respectively. This additionally supports barley prices.
The Turkish Grain Agency (TMO) conducted an international tender on October 30 for the purchase of feed barley. According to preliminary information, 250,000 tons were purchased at a price of 252.8–265.6 $/ton CFR for delivery between November 10 and December 10. This cost exceeds the purchase prices recorded in September (248.9–257.57 $/ton CFR).
“Over the week, export demand prices for feed barley in Ukraine have risen by another 50-100 UAH/ton to 10,300-10,400 UAH/ton or 215-217 $/ton 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 relative to the hryvnia will continue to raise prices in hryvnia.”
At the same time, corn prices remain low, which may limit further increases in the value of feed crops in the future. In this situation, farmers are advised to take advantage of the current trend of rising barley prices and accelerate sales to maximize profits.