Analysts from the agricultural cooperative PUSK, founded within the framework of VAR, report:
"There has been an increase in the purchase of barley, and we are seeing a rise in prices. Chinese quality is already trading within $216–218 per ton. Regular barley is being bought for $210–212, but these are mostly small lots — 300–500 tons. For lots of a thousand tons, an additional premium can be obtained. Deliveries to China must be completed by August 15–20, and as long as there is not enough supply, the market has the potential to rise to the level of $220 per ton with appropriate quality," reports PUSK.
At the same time, a decrease in activity on the barley market is possible after the completion of contracts with China.
"After the shipments to China are completed, a vacuum may arise in the market, as there are almost no new contracts. The premium for Chinese quality will disappear, and at current prices, barley is not competitive for other destinations — Israel, Cyprus, or the EU. The second half of August and part of September may be marked by a correction: the seasonal model shows a possible decrease..."