July 24, 2012

Ukraine needs to move to free export grain market

In order to promptly react to any price fluctuations, Ukraine is on urgent need to move to the free export of grain amid complicated price situation on world markets, Serhiy Stoyanov, the director general of the Ukrainian Agrarian Confederation (UAC), told reporters on Monday (July 23).

"Presently, the prices of grain in Ukraine are under pressure. I think that the further development of the price situation will depend on how the world markets behave. Prices in the futures market in Chicago stand at US$620 for soy, US$320 for corn and US$350 for wheat. Notably, the same price is in real sales by shipload lots - somewhere worth US$350 for both wheat, and corn. Of course, it makes impact and increases prices within Ukraine," said the expert.

According to him, if prices in the world will continue to grow as now, we have to raise the level of recommended prices. "If last year the recommended price was UAH1,600 (US$198) per tonne, but this year it should be UAH2,200 (US$272) per tonne of wheat. One has to recognise that the price in the domestic market should grow, it cannot be fixed," Stoyanov underscored.