July 21, 2010

Ukraine may increase grain export

Drought all over the world provoked a sharp increase in grain costs and Ukraine has a chance to strengthen its position on the world grain market.

It became extremely profitable for the Ukrainian companies to export wheat; its price in the world makes up over US$200/tonne, while in Ukraine it is slightly over US$150/tonne.

In Ukraine, hot weather will not lead to loss of agricultural crops, head of the Hydrometeorological Centre Mykola Kulbida stated earlier.

"Winter cultures have already completed or complete vegetation, therefore the present weather conditions do not threaten them. They could negatively influence corn, but the agrarians as of late sow the sorts that are stable against the weather," he explained.

The grain yield in Ukraine will make up 42.5-43.5 million tonnes, Kulbida forecasts. It is a bit higher against the Agrarian Policy Ministry's forecast of 42 million tonnes.

"With taking into consideration a drop of the yield volume in the world due to drought, we expect continuation of a growth of prices for grain in the nearest future," director general of the Volary company Yuriy Hordiychuk noted.

Due to this same reason, the farmers started to raise prices. By estimates of market participants, over recent two weeks prices grew approximately by 20%.