Export prices for barley in Ukraine reached the level of corn and feed wheat prices

Since the beginning of MY 2024/25, the export demand prices for barley remained 30-50 USD/t lower than for feed wheat and corn, which contributed to the growth of demand and increase of export supplies compared to the previous season.

In MY 2024/25 (as of January 17), Ukraine exported 2 mln tonnes of barley, up 64% compared to 1.22 mln tonnes in the same period last year. However, in December and January, exports slowed down due to reduced supply from farmers. In the first 17 days of January, exports amounted to only 9 thsd tonnes compared to 146 thsd tonnes in the same period in 2024.

Exporters are forced to increase the purchase prices for fodder crops due to limited supply from farmers and difficulties with the formation of export consignments for January. Therefore, last week the prices for feed barley increased by another 200-400 UAH/t to 9800-10000 UAH/t (206-209 USD/t) with delivery to the Black Sea ports and 210-215 USD/t to the Danube ports. Additionally, they were supported by the growth of prices for feed wheat and corn to 208-210 $/t in the ports of the Black Sea.

At the same time, domestic feed producers are creating serious competition for exporters by actively purchasing barley as the cheapest fodder crop to save on feed production. They are offering 9000-9400 UAH/t for barley with delivery to the plant.

However, it is expected that the rise in feed barley prices will soon reduce the demand for it from processors, who will prefer to buy cheaper wheat and corn.

Demand for malting barley from domestic processors remains low due to difficulties in selling malt on international markets. The purchase prices for it are 9000-9200 UAH/t with delivery to the plant.

It is worth noting that for the first time in the last three years, barley prices have reached the level of corn and feed wheat prices, which may encourage farmers to increase the area of spring barley sowing in the spring.

Tags: barley, prices, Ukraine