China switching to purchasing new-crop barley from Ukraine

UkrAgroConsult

Article author:

Maryna Marynych

Grain Market Analyst

2020-crop barley supply in the world market is shrinking, market participants are gradually switching to trading the new crop from the Northern Hemisphere.

Ukraine was the top barley exporter in the first five months of the season, but it will most likely rank just fourth for the entire season (preceded by the EU, Russia, and Australia), UkrAgroConsult reports.

According to UkrAgroConsult, Ukraine realized 91-93% of its export potential in July-January.

The most active buyer in MY 2020/21 is China, which has boosted its share in feed grain exports from Ukraine – in particular, that in barley sales is now up at 70%.

China increased its presence in the world barley market after tension had emerged between this country and Australia that entailed the imposition of an import tariff on barley of Australian origin.

Active demand from China is fueled by intentions to increase hog inventories in the country amid high domestic prices of coarse grains. The Chinese customs authorities say barley imports in the 2020 calendar year rose up 36%. According to some estimates, China’s 2020/21 imports may even exceed respective purchases by Saudi Arabia.

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UkrAgroConsult

Tags: China, barley, exports to China, Ukraine