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The upward trend in barley market prices due to the global crop of barley set to remain below demand for the second season in a row, according to USDA estimates, may result in an increase in Ukrainian barley plantings for the 2018 harvest, UkrAgroConsult wrote.
Global barley inventories are expected to shrink to a 34-year low of 18.6 MMT by the end of MY 2017/18, UkrAgroConsult reports.
This scenario’s feasibility is confirmed by sharply increased demand from key importers at the start of the 2017/18 season.
Thus, in view of tight global supply, the upward trend in barley market prices has been persisting for three months now and they have most likely not reached their ceiling yet.
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Planting of winter barley has just started in Ukraine, and the longer barley prices stay at such a high level, the more probable this course of events is.