COARSE GRAINS: WORLD MARKETS AND TRADE
Feeding in Europe/Black Sea Region Shifts to Barley: The differing supply and demand situations between wheat and barley this year, and subsequent price spreads, are encouraging a shift in feeding towards barley. Very tight wheat supplies both in these regions and around the world have caused export prices to soar. This will likely draw supplies in the EU-25, Russia, and Ukraine from domestic feeding and into export channels, to be replaced by lower-priced ample barley supplies. A year ago, French barley prices were at a $7 premium to wheat in Rouen, whereas now barley is at a $24 discount. The situation has been similar in the Black Sea region, where barley export prices a year ago were at a $10 per ton premium compared to milling wheat, and are now at a $27 discount (See PDF version for chart).
Domestic: July export bids for #2 yellow corn were up nearly $5 per ton to $114. Bids for #2 yellow sorghum (Texas Gulf) were up sharply by over $7 to $119 per ton.
Corn prices rose in July based on concerns over growing conditions with strong exports and domestic demand providing additional support. Sorghum export prices continue at a premium to corn and are supported by food aid shipments and prospects for a poor 2006 harvest (See PDF version for chart).
TRADE CHANGES IN 2006/2007
TRADE CHANGES IN 2005/2006
Return to Table of Contents
Last modified: Monday, August 14, 2006