May 16, 2008

Ukraine to face massive grain surplus in July

Grain stocks in Ukraine on May 1 totaled 8.6 million tonnes, 47 percent more than on the same date last year, the state statistics committee reported Friday (May 16, 2008).

The Ministry of Agriculture earlier forecasted this year's harvest, due in July, at 40 million tonnes, if this is correct, Ukraine would be overflowing with grains this year as the nation has only grain storage capacity of 30 million tonnes.

The country currently limits grain exports through quotas. 

Wheat stocks in the country totaled 4.3 million tonnes, 28 percent more than a year ago.

Of the total grain stocks, 2.6 million tonnes - including 1 million tonnes of wheat - was held by farmers and the rest by grain storage and processing enterprises.