August 23, 2011

Landkom International sells 30,000-tonne corn for export

Landkom International PLC, the Ukrainian producer of agricultural commodities, has agreed its first forward sale and export of corn, selling 30,000 tonnes of its 2011 corn crop for an average of US$278/tonne, excluding VAT.

The sale was made through two contracts, one for 10,000 tonnes at US$279 per tonne and one for 20,000 tonnes at US$277 per tonne. Delivery terms are CPT Odessa during the months of November and December 2011.

The Group expects the price to be equivalent to US$220 per tonne ex works, excluding VAT, after the deduction of broker commission, export tariffs, and delivery costs to the port.

Landkom International has now completed its rapeseed and winter wheat harvest, the results of which are due to be announced next week.

 Vitaliy Skotsyk, Landkom's CEO said, "These sales allow us to lock in good prices for what is expected to be approximately 50% of our total maize harvest. By exporting our crops we are able to take advantage of higher international prices and hedge foreign exchange risk to help achieve our growth targets."