Barley Prices Fall Under Pressure from Declining Corn and Sunflower Costs in Ukraine

The Ukrainian grain market is facing a downward trend in barley prices, according to reports from the Electronic Grain Exchange. While low export demand for feed barley was partially offset by domestic processors in September, the market landscape has since deteriorated. A sharp drop in domestic prices for corn and sunflower is dragging down the cost of raw materials for feed mills and livestock complexes, thereby intensifying downward price pressure on feed barley.

Current export demand prices for feed barley remain at 6,500–7,000 UAH/t ($140–150/t) delivered to Danube ports. However, the pool of active buyers is extremely limited. Compounding the issue, internal delivery costs from various regions of Ukraine have surged to 2,500–3,500 UAH/t, making shipments from central and northern parts of the country economically unviable for sellers.

Pricing for alternative feed commodities has also weakened. Feed corn prices have dropped to 4,500–5,000 UAH/t delivered to elevators, while sunflower meal has decreased to 4,000–4,500 UAH/t on an FCA-plant basis. Consequently, processors have reduced their purchase prices for feed barley to 5,000–5,500 UAH/t (including delivery to the mill), conducting only limited procurement amid abundant market supply.

A similar cautious approach is observed among malt plants, which are buying spring malting barley in limited quantities at 6,700–6,800 UAH/t delivered to the facility. In fact, several processing plants have suspended raw material intake altogether due to a severe shortage of available storage capacities.

Market analysts note that prior to this latest wave, export prices for Ukrainian barley had already fallen by $30–38 per ton. The future direction of the market will largely depend on export volumes, transportation logistics, and the broader supply-demand balance of feed crops.