Trade in new harvest is intensifying on the Ukrainian barley market

The Ukrainian barley market maintains price stability. At the same time, there is a gradual revival of trade in the new harvest, which forms expectations for the coming months. The market is also under the influence of another tender in Turkey, which supports world prices. This was reported by the analytical department of the agricultural cooperative PUSK, established within the framework of the All-Ukrainian Agrarian Council.

“The key factor for the market is now the Turkish tender. According to preliminary estimates, more than 200 thousand tons of barley will be purchased with delivery in March-May. This is a fairly significant volume that affects the balance of supply and demand in the Black Sea region,” analysts note. In the domestic market of Ukraine, prices for old-crop barley remain relatively stable.

“Current prices are in the range of 10,800–11,100 UAH/t. At the same time, given the exchange rate, it would be logical to expect a level closer to 11,200–11,400 UAH/t. However, there are no such indicators on the market yet. This indicates restrained demand. Market participants are not ready to actively raise prices, and no significant changes in prices for old-crop barley are expected in the next 1–1.5 months,” the PUSK predicts. In parallel, trade in new-crop barley is gradually becoming more active. The first price indicators are already being announced on the market, which shape producers’ expectations.

“Trade in new crops is starting to become more active. Demand prices for standard quality are currently being announced at $205–207/t, while for “Chinese” quality, people are willing to pay $210–211/t. In the next few weeks, we should hardly expect significant changes in these levels. “Theoretically, the new crop could add a few more dollars, but it won’t be a drastic move. More active sales can be expected in April-May,” analysts believe.

Tags: barley, prices, Ukraine