May 27, 2011

Ukraine may boost grain exports on low yields in EU and US

Ukraine may return to the world grain market in the coming months and swap roles with the US and Europe, where drought leads to yield losses.

Export restrictions imposed by Ukraine will reduce its share in the world grain trade based on the marketing year returns (July 2010 - June 2011) to 6%, down from 22% a year earlier, according to the forecast of the International Grains Council (IGC).

It is noted that the US and France, which once increased supplies to the Black Sea countries, this year are struggling with drought, which caused reduction in the harvest, and may reduce their export opportunities in 2011-2012.

Ukraine, in turn, will increase grain production this year by about 15% to 45 million tonnes, according to the agriculture ministry. The country will appropriately raise grain exports to 20 million tonnes, up from 13 million tonnes in 2011, Agriculture Minister Mykola Prysiazhniuk said.