The planted area under winter barley for the 2023 harvest in Ukraine will reach the lowest level in recent years - 675.700 hectares, but in 2022 the crop was planted on 969,000 hectares. The decline in barley production is a global trend. Currently, there is almost no demand for Ukrainian barley of the old harvest, and prices will continue to decline.
This was discussed on May 16 during a weekly briefing organized by the analytical center of the PUSK cooperative, created within the UAC.
"Barley production in Ukraine is not expected to exceed 6 million tons this year. A certain decline in production of this crop is a global trend. The main importers of barley - China and Saudi Arabia - are expected to reduce purchases of the grain. Currently, the new barley harvest from France is offered in the range of 244-248 USD/t on FOB terms. In the Romanian port, the price tags for barley of the new harvest for delivery in July are at the level of 190-195 $/t.
Ukraine still has stocks of the old barley harvest, the indicative price for which is about 175 USD/t, but there is almost no trade. For cash, the old crop in small river ports can be sold at very low price tags of 140-145 USD/t, which is not economically feasible, so the movement is minimal. In April-May, barley trade always reduces its activity," said the analytical department of PUSK cooperative.
The situation on the barley market may be improved during the new harvest and prolongation of the grain corridor on the Black Sea. Currently, there are no forward contracts for the new Ukrainian barley harvest.Tuesday, 16 May 2023