W10 Barley Update: Spring Crop Sowing in Ukraine Amid Conflict: Stability in Italian Barley Prices

Published 2024년 3월 15일

In W10 in the barley landscape, Ukrainian provinces have initiated spring crop sowing as of March 7, 2024, despite ongoing challenges. Barley dominates the planting, covering 38.9 thousand ha, followed by peas, wheat, and oats. The Odessa region leads in sowing activity, with 33 thousand ha dedicated to various crops. Overall, Ukraine aims for increased sowing areas compared to 2023, but challenges such as personnel shortages and demining operations persist. Meanwhile, Italian barley prices remain stable, contrasting declines seen in other feed grains like wheat and sorghum, potentially influenced by the euro-dollar exchange rate.

Ukrainian Spring Sowing Commences Despite Ongoing Conflict

Ukrainian spring crop sowing has commenced across various provinces as of March 7, 2024. This development marks a crucial step in the country's agricultural season amidst the ongoing conflict. Twelve provinces have initiated the sowing of spring crops, with a total area of 68 thousand hectares (ha). Barley accounts for the largest share of spring crop sowing thus far, with 38.9 thousand ha planted, followed by peas (23.3 thousand ha), wheat (4.3 thousand ha), and oats (1.5 thousand ha). The Odessa region leads in terms of total area sown (33 thousand ha), with a significant portion dedicated to barley (17.5 thousand ha) and peas (14.3 thousand ha). The Mykolaiv region follows with 11.5 thousand ha of barley sown.

The Ukrainian Ministry of Agrarian Policy reported an overall increase in planned sowing areas for grain, technical, vegetable, melon, and fodder crops in 2024 compared to 2023. Early spring crops, including barley, peas, wheat, and oats, are expected to cover 91.5 thousand ha. As of W10, the sowing of these crops has already begun, with farmers capitalizing on favorable February weather conditions. Despite the progress, the agricultural sector in Ukraine continues to face significant challenges. These include a lack of personnel and the need for demining operations in war-affected areas. The success of the 2024 harvest will depend on mitigating these challenges and ensuring continued progress in sowing efforts.

Italian Barley Prices Remain Steady Amidst Declines in Other Feed Grains

Data from the Italian Online Commodity Exchange (BMTI) revealed recent trends in the Italian market for feed grains. Unlike other feed grains, barley prices in Italy remained stable during W10 of Mar-24 compared to W9. Heavy barley is currently priced at USD 212 to 217/mt, reflecting a YoY decrease of 25%.

While domestic soybean prices remained stable, soybean flour prices experienced a decline, potentially influenced by the euro-dollar exchange rate. Soft wheat and sorghum prices witnessed further declines in the W10 compared to W9. Wheat for livestock use in Bologna decreased by USD 227 to 232/mt, representing a YoY decline of 27%. Sorghum prices also dropped by USD 201 to 207/mt, with a YoY decrease of 39%.