Barley export from Ukraine trailing the last year’s results and pushes the prices down

The pace and the volumes of barley shipments from the seaports of Ukraine are lower compared to last year and push the prices for barley down, declared the Head of the grain market department at APK-Inform Agency, Anna Tanskaya.

Since the beginning of 2018/19 MY (July-February) Ukraine exported 3.241 mln tonnes of barley compared to 4.017 mln tonnes in the same period in 2017/18 MY.

The expert noted that volumes of export declined to 10 thsd tonnes in February, which is 85% lower year-on-year, and according to the preliminary updated data of APK-Inform Agency, since March 2019 the were no barley exports from the seaports of Ukraine.

Taking into account the current tendencies, the analysts of APK-Inform Agency reduced the export potential of the Ukrainian market of barley this season from 4.2 mln tonnes to 3.8 mln tonnes.

“For now, the export potential of the Ukrainian barley is 85% complete, and the free volumes of the grain on the domestic market are nearly absent which does not give the possibility to form the consignments of barley for export by Panamax and limits the external demand. All these reduce the interest of the traders in the work with this crop and pressure the prices. In particular, in March the bid prices for barley decreased by 350-700 UAH/t to 5`350-6`000 UAH/t CPT-port. Since the significant reduction of the trading activity on the market (since February 2019) the prices fell by 1`150-1`450 UAH/t. Taking into account the current trends and the absence of any deliveries of barley for export there is a possibility that the export potential will continue to decline. At the same time 2018/19 MY is rather successful for the market of barley in Ukraine as confirmed by the price dynamics during the peak period. Such the high prices for barley in terms of FOB were last seen in 2013/14 MY and in terms of CPT-port there were no such prices, with the exception during February 2015 – the prices reached the record level 5`0005`200 UAH/t CPT-port” – said A. Tanskaya.