Ukrainian barley is getting cheaper amid logistical problems and weak demand

Ukrainian barley is getting cheaper amid logistical problems and weak demand


The increase in the supply of the new crop and the suspension of seaport operations have increased pressure on the Ukrainian feed barley market.

In Ukraine, the decline in feed barley prices continued last week. This is reported reported by APK-Inform.

The main factors were the increase in the supply of grain from the new crop and the suspension of seaport operations due to military risks.

According to analysts, additional pressure on the market creates restrained demand. Many domestic consumers are still using previously formed stocks and are not in a hurry with new purchases, expecting a further decrease in prices.

At the same time, farmers mainly sell grain in small batches, refraining from selling significant volumes in anticipation of an improvement in the market situation.

According to the results of the week, the demand prices for feed barley on the domestic market amounted to 5,800–8,000 UAH/t CPT.

The largest decline was recorded in Ukrainian ports, where purchase prices fell by $30–38 per ton and are currently in the range of $130–150/t CPT port. This indicates a significant impact of logistical restrictions on the export segment of the market.

As USM wrote the day before, losses to the agricultural sector due to the suspension of sea exports could reach $3 billion.