Russia loses ground in Saudi Arabia

22.09.2016

Barley harvesting in Russia entered the final straight. More than 18.2 MMT of barley were collected from about 93% of acreage, which already exceeds last year’s harvest. According to UkrAgroConsult, this year Russia will obtain 9% more barley than a year before.

Undoubtedly, export potential will also grow in the 2016/17 season. UkrAgroConsult believes that it may surpass last season’s rate by 20%.

Meanwhile, during the first two months of this season barley exports from Russia decreased by 30% compared to July-August 2015/16. Since early September low export rates have not improved and Russian barley market remained weak.

Last season both Russia and Ukraine shipped more than 2.3 MMT of barley to Saudi Arabia, thereby providing about 43% of country's import needs. This season the struggle for markets in the Black Sea region toughens in view of increased grain production in key exporting countries. Saudi Arabia is not an exception for barley. After all, this importer provides more than a half of export potential for both Russia and Ukraine.

Full version of the article is available to subscribers for weekly market report “Black Sea Grain & Oil” and “Online market review” by UkrAgroConsult.

 

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