The Ukrainian barley export market is transferring to road and rail logistics, with 60% of shipments going to border crossings with Romania. This is due to rising freight costs and the threat of Russian attacks on the Danube port infrastructure.

This was discussed on August 29 during a weekly briefing organized by the PUSK cooperative analytical department, created within the UAC.

"Farmers are trying to export barley mostly on their own. At the same time, 60% of supplies are carried out by road and rail to Romania. Traders are not very interested in barley trade at the moment. Rising freight costs are creating strong constraints. There is a demand for Ukrainian barley, but the grain is too expensive: for liquidity in river ports, the price tag should be USD110-120/t on CPT terms, but farmers will not supply at such a low price. In addition, market participants fear repeated Russian attacks on the infrastructure of the Danube ports. It is more profitable for farmers to transport barley to the borders than to Reni, in particular to Chop, where the price is 140 USD/t. Even farmers in the central regions have started to take interest in barley road deliveries to Romania, as the logistics are cheaper," said the analytical department of the PUSK cooperative.

In the barley market, processors are more active than traders. Purchase prices are 4,500-5,200 UAH/t.

In the first week of September, the notional prices for barley may increase to 195-202 USD/t on DAP Constanta basis, and to 142-147 USD/t on CPT river ports basis.