Russia and Ukraine: The Black Sea market is the price leader of feed barley markets

The Russian barley crop is estimated by analysts at 16.3 million tones compared to 17.2 million tonnes last year. The reason behind this drop would be a lower acreage of 9.3 million hectares as compared to 10.0 million hectares previously.

The Ukrainian estimate is unchanged at 8.8 million tonnes. Feed barley shipments until the end of September are said to be 1 Million tonnes from the Ukraine and a surprisingly high 600,000 tonnes from Russia. The Black Sea market is the price leader of feed barley markets, US $ 127, has been traded, small lots from small ports are selling in the low 120's.

It is remarkable that Turkey sold 85,000 tonnes in a recent tender at 132.50 to 135.- FOB. Both Russia and Ukraine are far behind with their plantings of winter grains, as the South of both countries has suffered from dryness during the past two months. They are afraid of smaller grain crops in 2006, but the unplanted winter acreage could, of course, be used for an increase of spring barley.

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