Ukraine. Barley prices have become higher than corn prices

In Ukraine, farmers’ sales restraint amid traders’ need to close contracts has led to an increase in export purchase prices for barley to levels that match feed wheat prices and exceed corn prices. However, farmers should note that this increase is only due to the temporary need to purchase additional grain volumes that are lacking in ports, as well as to lower transshipment costs and falling freight rates due to reduced global grain imports.

During the week, prices for feed barley in Black Sea ports increased by another 200–400 UAH/t to 10,400–10,600 UAH/t or $220–224/t, while prices for corn were $218–219/t, and for feed wheat – $220–223/t.

Barley exports continued to decline for the third consecutive month in February. During the period from February 1 to 17, barley exports decreased from 132,000 to 42,000 tons compared to the same period last year. In total, in the MY 2024/25 (as of February 17), they amounted to 2.1 million tons, which is 36% higher than the corresponding figure for the previous season (1.55 million tons).

Traders need to buy small batches of barley, but they will refrain from further purchases, as the formation of full-fledged shipping batches is complicated by farmers’ reluctance to sell grain.

Amid a sharp increase in feed barley prices, processors have raised their purchase prices for malting barley to UAH 10,400–10,500/t delivered to the mill. However, the supply of malting barley remains limited, as a significant portion of it was sold for feed purposes at the beginning of the season during a period of high export prices.

Australia’s increased barley production is strengthening its position in the global market. According to Flexi Grain, the country will increase barley exports to 1 million tons per month in January and February, and possibly March.

According to the Australian Bureau of Statistics, in December 2024, the country exported 679.11 thousand tons of barley, of which 498.46 thousand tons were feed and 180.65 thousand tons were malting, while in November, 600.44 thousand tons of feed and 233.34 thousand tons of malting barley were exported.

The main buyers of feed barley in December were China (258.23 thousand tons), Saudi Arabia (150 thousand tons) and Japan (66 thousand tons), and of malting barley – China (127.71 thousand tons), South Africa (46.41 thousand tons) and Singapore (2.36 thousand tons).

Notably, the market was surprised by the resumption of active purchases of Australian barley by Saudi Arabia, which purchased 30% of all December feed grain exports. This indicates limited barley supply from other suppliers and the competitiveness of Australian prices.

Tags: Ukraine, corn, barley, prices