Ukrainian barley will not save the world market

25.07.2017

The world’s barley production in the current season is forecast to be 6 MMT below global consumption and this trend has been observed for a second season in a row. Thus, according to USDA forecasts, global barley inventories will close 2017/18 season at less than 20 MMT – this will happen for the first time since 1983/84 season.

Unlike wheat and corn, whose production has beaten all records over the last few seasons, the peak of barley output (180 MMT) was passed back in 1990. The top barley exporters, including Ukraine, actively respond to the decline in key importers’ demand by reducing their barley planted acreage.
 
Apart from shrunk plantings, dry weather in the key exporting countries was also a decisive factor this season. Consequently, the barley market followed the wheat market scenario and responded with explosive price growth, though it was not as rapid as in wheat prices.

Full version of the article is available to subscribers for weekly market report “AgriNews, Kiev” and “Online market review” by UkrAgroConsult.

 

UkrAgroConsult

 

Readers choice: TOP-5 articles of the month by UkrAgroConsult