W12 Barley Update: Quality Control Measures in Russia's Kursk Region Amidst Price Rise Despite Subdued Demand

Published 2024년 4월 2일

In W12 in the barley landscape, in the Kursk region of Russia, barley production and quality control measures are being implemented to meet domestic and export market standards. Exported barley from the Kursk region totaling 29.5 thousand mt, primarily heads to Latvia, while larger volumes (145 thousand mt) are designated for domestic use. The Kursk branch of the Grain Quality Assessment Center plays a crucial role in ensuring barley quality through extensive testing against various standards and safety parameters. Meanwhile, globally, the barley market presents a nuanced scenario, with reduced demand and trade activity balancing out an overall comfortable supply-demand balance. However, European barley prices are increasing due to moisture-related planting challenges, offering cautious optimism. In Canada, seasonal factors have caused temporary price increases, with good moisture conditions promising well for the upcoming planting season. Additionally, barley FOB prices show variability in Argentina, with forage barley ranging from USD 160 to 175/mt and malting barley fetching slightly higher prices.

Kursk Region Focuses on Barley Quality Control for Domestic Use and Exports

Russia's Kursk region is catering to both domestic consumption and export markets. The implemented quality control measures help ensure that exported barley from Russia meets international standards and domestic requirements. Data from the Kursk branch of the Federal State Budgetary Institution "Grain Quality Assessment Center" sheds light on year-to-date (YTD) barley production and quality control measures in the Kursk region for 2024.

As of the reporting period, barley exports from the Kursk region totaled 29.5 metric tons (mt), with Latvia as the primary export destination. Quality testing has been conducted on a larger volume of barley (145 thousand mt) intended for domestic use within Russia. The Kursk branch of the Grain Quality Assessment Center plays a crucial role in ensuring barley quality. In 2024 (YTD), the laboratory has analyzed a total of 174.6 thousand mt of barley samples against various standards, including GOST 5060-86 (malting barley), GOST R 53900-2010 (feed barley), and GOST 28672-2019 (barley), in addition to safety parameters like pesticide residues, radionuclide content, mycotoxins, heavy metals, GMO presence, and specific import requirements.

Global Barley Market Sees Upward Price Trend Despite Sluggish Demand

The global barley market presents a mixed picture, with signs of price increases in some regions counterbalanced by a lack of overall demand recovery. The 2023 global barley harvest is estimated at 142.8 million metric tons (mmt), nearly 10 mmt lower than in 2022, representing one of the lowest harvests in the past decade. However, reduced demand and trade activity resulting in a comfortable supply-demand balance, keeping prices subdued. While the global picture remains stagnant, European barley prices are experiencing an upward trend. This is primarily driven by excessive moisture that has significantly hampered spring barley sowing in Europe, particularly France, the continent's leading exporter. China's recent entry into the forage barley market offers a source of cautious optimism for European producers.

Seasonal factors, including weather and logistical challenges, have caused a temporary price increase for forage barley and corn in Canada. However, concerns persist regarding low planting activity due to unfavorable weather conditions and historically low prices. The recent resumption of barley exports to China has stimulated the movement of grain from farms to ports. While the recently concluded harvest yielded 10.8 mmt (above average in the east, below average in the west), good moisture conditions bode well for the upcoming planting season. With the 2023/24 harvest complete, barley export declarations for the current season stand at 1.47 mmt for forage barley and 551.8 thousand mt for malting barley. The sowing area for the 2024/25 campaign is expected to remain similar or slightly decrease compared to the previous season.

As of March 15, 2024, Argentina's barley market for forage barley, the export Free on Board (FOB) prices range between USD 160 to 175/mt. Meanwhile, malting barley commands a slightly higher price, with FOB rates ranging from USD 185 to 190/mt. Looking ahead to the 2024/25 campaign, brewing barley prices are anticipated to range between USD 180 to 185/mt. In addition to barley, official FOB values for other grains in Argentina are reported, with wheat bread priced at USD 220/mt and corn at USD 193/mt.