September 9, 2004

Moldova To Begin Large Wheat Exports Soon

Mass-scale exports of wheat from Moldova are likely to begin in the second half of September, according to analysts at the Moldova Universal Commodity Exchange.

MUCE Board Chairman Mr. Igor Dodon told a news conference that 17 transactions had been made at the Exchange so far totaling 24 thousand tons of grain to be exported, including 3 thousand tons of wheat.

"Such a modest wheat amount has been due to a number of factors. For instance, Romania, which used to be one of the leading importers of wheat from Moldova, has slapped a 25% tax on wheat imports this year. Moreover, wheat, unlike barley, cannot be shipped abroad straightaway. It needs a certain treatment at grain elevators, and has to be kept and dried for several weeks before dispatching", Igor Dodon explained.

A ton of barley currently costs about USD 85, against USD 65 in 2002. Wheat prices at the local market vary between 1,500 and 2,100 lei a ton, depending on gluten content.

The Moldovan Government has decreed that this year wheat grain may only be exported from the country on the basis of contracts registered with the MUCE.

"Local producers now have reliable information about current prices, and can decide themselves about which price to set for their product. Besides, the Exchange guarantees timely receiving of money for grain shipped", Dodon said.