Demand Drives Ukrainian Barley Prices Higher

Barley prices in Ukraine have surged recently, driven by strong export demand and a weakening hryvnia. While the current market appears bullish, challenges in the second half of the season may temper this upward trend, traders suggest.

Over the past two weeks, feed barley prices in Ukrainian Black Sea ports have risen to USD 0,19 per kg, with Danube ports reporting prices of USD 0,19-0,20 per kg. Feed corn, a competing grain, is now priced at USD 0,20-0,21 per kg, keeping overall demand strong. Farmers, however, are holding onto their stocks, confident that prices could climb even further.

Malting Barley Faces Tough Competition

Malting barley prices have remained steady at USD 0,18-0,19 per kg, but the segment is under pressure. European malt producers and low malt prices are making it harder for Ukrainian suppliers to find traction in this market. Additionally, declining global beer consumption is weighing on demand, adding another layer of complexity.

Ukraine has exported 1.9 million tonnes of barley so far this season, more than double last year’s 946,000 tonnes during the same period. However, December exports have slowed to 37,000 tonnes, a significant drop from 72,000 tonnes last December. Traders attribute this to market fluctuations and shifting demand patterns.

European Harvests Expected to Increase

Barley exports from the European Union have decreased by 34%, totaling 2.09 million tonnes this season. Saudi Arabia, China, and Algeria remain key buyers. Despite the current slowdown, forecasts for 2025 indicate an increase in EU and UK barley production, with combined output expected to reach 59.7 million tonnes, up from 57.3 million tonnes in 2024.

Ukraine’s Barley Harvest Holds Steady

Ukraine’s barley harvest for the 2024/25 season came in at 5.5 million tonnes, slightly below last year’s 5.8 million tonnes. The country is projected to export between 2.5 and 3 million tonnes, maintaining its strong presence in global markets despite challenges.

Conclusion: Barley Market Faces Opportunities and Challenges

While Ukrainian barley prices are riding a wave of strong demand, the market’s future remains uncertain. Rising competition from European producers and shifting global consumption patterns could test exporters in the months ahead. To stay ahead, Ukrainian traders must focus on maximizing current gains and staying agile in response to market changes. A proactive approach will be essential to tackle challenges and seize opportunities in this evolving landscape.





Click here to reach our trading platfrom CMBroker