In W29 in the barley landscape, several factors influenced barley price movements in the Russian market. This included slow new barley crop harvesting due to rains, hindering the supply to the market. On the other hand, there was a decrease in active export trade due to possible logistical difficulties. Despite these fluctuations, the Russian ruble prices experienced growth that exceeded initial expectations, leading to actual prices reaching a fair parity level. This growth is attributed to Russia's active export position in Jul-23, with large-scale shipments destined for Libya, Saudi Arabia, and Tunisia. It’s worth noting that the export market registered barley price declines despite the impact of Russia’s withdrawal from the Black Sea grain corridor initiative in other markets. As a result, there are expectations for strengthening prices for Free On Board (FOB) Black Sea barley in the medium term.
In the Volyn region in Ukraine, winter barley harvesting from an area of 7.7 thousand hectares (ha) reached 38.5 thousand metric tons (mt), with an average yield of 5 mt/ha. Comparatively, 2022's average barley yield was 4.5 mt/ha, and the sown area was 31 thousand ha. The current harvest reflects a successful winter barley production in the region.
Winter barley harvesting in Belarus was completed on 142.1 thousand ha, accounting for 92.8% of the total harvested area. The winter barley harvest yielded 496.3 thousand mt, with an average yield of 3.49 mt/ha. The production volume reflects a productive winter barley harvest in Belarus, contributing to the overall grain output for the season.
The grain harvest in the Schleswig-Holstein region in Germany is expected to reach nearly 2.3 million metric tons (mmt) in 2023, a year-on-year (YoY) decrease of around 15%. The area sown for winter barley increased by almost 5% YoY, reaching 71.4 thousand ha. Winter barley is expected to reach 603.1 thousand mt, with an average yield of 8.4 mt/ha. However, the average yield is 9% lower than in 2022 and almost 2% below the multi-year average. This indicates potential challenges in achieving higher winter barley yields.
Lastly, farmers in the Rhineland region in Germany completed the winter barley harvest in recent weeks. This is despite challenges such as a late emergence caused by a wet spring and subsequent drought and hot weather. The winter barley crops developed well, and initial estimates suggest yields slightly above the Rhenish average of around 8.3 mt/ha, with 2022's yield of around 8.6 mt/ha serving as a basis. The winter barley quality is also commendably high, making it a valuable animal feed. The Rheinische Landwirtschafts-Verband (RLV) emphasizes that barley cultivation is not in competition with food cultivation. Climate change prompted Rhenish farmers to adopt crop rotation and cycles since not all crops are suitable for direct human consumption but can be converted into high-quality food through animals.