Ukraine exported a record amount of barley in January

Ukraine exported 432 thsd tonnes of barley in January 2024, which is the record figure for the current season. This was discussed on February 6 during the weekly briefing organized by the analytical center of the agricultural cooperative PUSK, created within the framework of the VAR (Vseukrainska Agrarna Rada – All-Ukrainian Agrarian Council).

“Barley was a relatively cheap grain crop, and it was eagerly bought by the EU and China. It is the low price that explains the high demand and record exports in January – 432 thousand tons. We have already contracted 150 thousand tons for February. But the situation may change in the future. Barley is now losing out to other feed crops: wheat and corn. These crops fell in price, while barley remained unchanged. On the FOB and CIF markets, barley is priced at the price of corn, and this is a negative point. For the Italian market, for example, barley is priced at $210-212 per ton. Corn prices are at the same level. The usual spread between these fodder crops should be $10-15 per ton, meaning barley should be cheaper than corn, but now prices are at the same level. In China, the situation is similar: both barley and corn are priced at $240 per ton. Under such conditions, China would rather choose corn than barley. In the future, there are possible scenarios that either corn will rise in price or barley will decline,” says the analytical department of PUSK.

In March-April, the demand for barley can be expected to fall.

“Because the price of barley has risen so much compared to other feed crops, the global demand for this grain may be very low in March-April. It seems that the price peak of barley is over. In February, barley prices will be in the range of $155-160 per ton, but in March-April, the price is likely to decline as demand may be stagnant,” the analysts added.

Tags: barley, prices, Ukraine