Ukraine exported 432,000 tonnes of barley, season's largest amount, in Jan - analysts

MOSCOW. Feb 7 (Interfax) - Ukraine exported 432,000 tonnes of barley in January 2024, the largest amount in the current season, Ukrainian media said, citing the analytical center of the First Ukrainian Agricultural Cooperative, set up within the Ukrainian Agrarian Council.

"Barley was a relatively low-cost crop, and it was eagerly bought by the EU and China. The low price explains the high demand and record exports in January - 432,000 tonnes. We have already contracted 150,000 tonnes for February," the center's analysts said.

However, the situation may change in the future, as barley is now losing out to other feed crops, such as wheat and corn, they said. The price of these crops has dropped, but barley prices remain unchanged.

On the FOB and CIF markets, barley prices are set based on the price of corn, which is a negative factor, because for the Italian market, for example, barley is priced at $210-$212 per tonne, the analysts said. Corn prices are at the same level. The usual spread between these feed crops should be $10-$15 per tonne, i.e. barley should be cheaper than corn, but now prices are at the same level. As for China, the situation is similar: both barley and corn are priced at $240 per tonne. Under such circumstances, China would rather choose corn than barley, the experts said.

"There are possible scenarios in the future that either the price of corn will rise or the price of barley will decline," they said.