August 6, 2010

Ukraine feed wheat sale to Philippines cancelled

A sale of Ukrainian origin feed wheat to the Philippines has been cancelled due to a lack of supply and higher prices, according to trading executives.

At least one cargo delivery of 40,000-50,000 tonnes of Ukrainian wheat to the Philippines has been cancelled due to supply-related problems, said an executive with a global trading company who did not wish to be named.

He said the sale was made through a global trading company.

Traders said most of them are unable to secure wheat from Ukraine due to an indefinite delay in customs clearance. Another company scheduled to supply feed wheat from Ukraine to South Korea has switched the origin to the US, resulting in substantially higher costs.

Ukraine has cut its forecast for this year's grain output to 42 million tonnes, compared with last year's production of 46 million tonnes, due to untimely rains at the time of harvest.