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Ukrainian Grain&Oilseed Market

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Wheat has hit record high

09.10.2008 08:06 "Agro Perspectiva" (Kyiv) — As to Ukrainian Customs House data, this year Sept wheat export has reached 1.5 mn MT (last 9 years record monthly high).

However, Ukrainian officials think this record is possible to be renewed still by yearend. Thus, as to Deputy Minister of Agrarian Policy Yaroslav Gadzalo, Ukraine plans to

export 13 mn total grains until yearend.

As to Gadzalo, as of Oct 02/08, since Jul 01/08 (that is, since this MY beginning), Ukrainian grains export totaled 6.3 mn MT. Thus, within a few months remaining till yearend, Ukraine should export 2.2 mn MT grains monthly.

Ministry of Agrarian Policy hasn’t so far revised this MY total grains export plan (which is 20-22 mn MT). However, active export doesn’t mean grains sale prices growth: as of now, feed grains prices range within ≈ UAH700-800 per MT. Officials have already made some steps to stabilize agricultural producers products sale prices, – that is, maximal/minimal prices introduction, giving permission to Agrarian Fund to purchase 6 class wheat and promising VAT accelerated reimbursement to companies purchasing grains directly from agrarians at prices not below State-fixed minimal.

As to Volodymyr Klymenko, Ukrainian Grain Association (UGA) President, grains purchase prices can be supported by UAH/US$ rate stability, guaranteed VAT reimbursement and grains transportation tariffs decline.

“US$ is a currency used in all export contracts. Due to US$ rate having had fallen against UAH within this MY beginning, we have lost ≈ UAH120 per MT grains. Now, US$ rate has changed. It is profitable for Ukrainian exporters and agriculture that US$ rate has started growing against UAH,” said Klymenko.

As of now, exporters are obliged to push down their grains purchase prices due to all ports obligatory fees 58% rise introduction (owing to Cabinet Decree ¹ 769 from Aug 20, 2008 “About Brining Changes to Ukrainian Cabinet Decree ¹ 1544 from Oct 12, 2000” having had come into effect since Sept 11, 2008). Besides, within this year Ukrainian ports transshipment works have grown by ≈ 2 times.

In meanwhile, Ukrainian market participants, firstly bakers, are worried about uncontrolled grains (esp. food grains) export.

“Ukrainian borders are now open. Thus, it is not clear how much grains will remain for domestic market consumption,” says Igor Mazuryka, Khlib Kyieva General Director.

However, so far officials haven’t declared about any food grains export limitation plans.

Reportedly, as of Oct 03/08, Ukrainian agricultural companies of all kinds ownership had threshed 45,433.100 MT grains/leguminous crops (average yield – 34,4 metric centners per ha).

This year Ukrainian grains (incl. maize) crop official forecast is 48.6 mn MT (up against ≈ 29.3 mn MT harvested in 2007).

Agro Perspectiva

< Within this year 9 months Ukrainian agrarians have attracted UAH13.6 milliard credits

All news for
09.10.2008

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