Ukraine to see decreased barley harvest due to adverse weather - analysts

MOSCOW. June 28 (Interfax) - Adverse weather conditions in the south of Ukraine could affect barley yield and the gross output of the crop, and there may be a "price swing" on the barley market due to high global prices for this crop, experts at the analytical center of the Pusk cooperative society, set up by the Ukrainian Agrarian Council, said.

"Due to the weather conditions in the south, the grain is recorded with low natural content, and there is also a problem of lodging of barley, which will negatively affect the crop yield. This situation will contribute to the growth of barley prices, and the global market is also on an upward trend. However, during the harvesting period, we can expect a temporary decline in demand and prices for barley," Ukrainian media quoted the analysts as saying.

In Ukraine, the indicative price for barley is $130 per tonne, and it may rise to $145 per tonne in the near future, they said. Given the weather factors, the supply will not increase this week. The barley harvest can be expected after July 15, and before that, the shortage of supply may push prices up.

"July will be an extremely unstable month on the barley market and the most unfavorable for sales: despite the fact that the low harvest will support prices, the marks risk falling to $125 per tonne. However, in August, the market will start to grow, reaching at least $190-$200 per tonne, and the maximum prices may be seen in December," the analysts said.

The largest buyer of barley is currently China, which is expected to purchase 7 million tonnes of the crop, they said. China is now importing large amounts of barley under contracts with France, which, however, will not be able to single-handedly provide the entire amount needed. Ukrainian barley will be in demand in China, but logistics remains a problem for supplies from Ukraine, the analysts said.