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Severe weather conditions contributed to 2020 barley prices

31.05.2020

Adverse weather was somewhat supported by prices for barley of a new crop in the Black Sea region. Frosts in April and prolonged rainfall in May are of concern to Ukrainian market operators regarding the state of barley crops for the new crop.

About this writes Refinitiv Agriculture in Telegram.

Trading activity in Ukrainian barley is aimed at deliveries to China. In this regard, market operators assess trade prospects in the light of China's introduction of an anti-dumping duty on Australian barley and note strong competition with French barley, the demand for which is more active, ”the report says.

As traders point out, French barley prices were also supported by strong demand from China.

On the basis of CPT Odessa, traders voice two purchase prices for new barley: ordinary barley - about $ 163-165 per ton, and barley with documents for export to China - $ 170-172 per ton. However, market operators believe that the premium for China will narrow in the future.

“Offers of Russian barley of a new crop from the ports of the Azov region started from the level of $ 165 per ton on the basis of CIF Marmara with delivery in July. There are no demand prices on the market yet. The supply prices of the old barley, fixed by Refinitiv back in mid-April on the basis of the FOB Azov, amounted to $ 160 per ton, ”the material says.

Recall that from the beginning of the 2019/20 marketing year (July 2019 - June 2020) as of June 1, 2020, grain exports from Ukraine reached 54.35 million tons.

writes latifundist.com