Barley. Why does the most expensive grain crop remain “unpromising”?

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Sych Maryna  grain market analyst at “UkrAgroConsult”

Barley remains the most expensive major grain crop for a second consecutive season – its price still exceeds even that of high-protein wheat. Barley prices in the export market are at a nearly five-year high, but why do growers “not believe” in this crop and decline to expand its plantings even despite such a high price level?

The obstacles to this included not only the weather factor. Yes, the plans of Ukrainian farmers indeed envisaged increasing the planted area of barley for the 2018 crop, but the weather made its adjustments. So, barley plantings continued shrinking instead of an expected expansion.

Nonetheless, despite quite attractive barley prices, there are a number of factors preventing the planted area from a substantial expansion, reports UkrAgroConsult.

Certainty, barley remains attractive to traders in view of such a level of its world prices, but price is not the only key factor for farmers – their choice in favor of any crop just becomes more difficult.

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

Analytical report “Black Sea Grain” contains detailed information on the latest trends in grain exports, supply and demand balances with breakdown by crop, price behavior, crop conditions and progress in harvesting/planting in the countries of Black Sea region.

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UkrAgroConsult

 

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