November 20, 2012

Ukraine may export 3.2 million tonnes grain in November

Fearing possible wheat export curbs, Ukrainian grain traders are likely to ship abroad a record 3.2 million tonnes of grain in November.

According to Ukrainian Agrarian Confederation (UAC) grain lobby on Monday (Nov 19) that the country had exported 1.8 million tonnes of grain in November 1-16 and the volume included 900,000 tonnes of wheat, 800,000 tonnes of corn and about 100,000 tonnes of barley.

The lobby said the exports had reached 10.3 million tonnes so far this season, including five million tonnes of wheat, 3.6 million tonnes of corn, and 1.6 million tonnes of barley.

Last month, agriculture minister Mykola Prysyazhnyuk said Ukraine, which reduced its wheat harvest by a third in 2012 to 15 million tonnes, would ban wheat exports in a bid to ensure stable bread prices, but later the ministry softened its position.

Ukrainian grain traders said this month they had reached an agreement with the government to increase the allowed export volume of wheat to 5.5 million tonnes from five million.

Later traders and analysts said the ministry appeared to have backtracked on a promise not to impose any restrictions on wheat exports before December 1 and could introduce curbs within weeks. They said the ministry could take any action immediately once exports exceed 5.5 million tonnes.

"If Ukraine keeps the current pace of wheat exports the agreed volume of 5.5 million tonnes will be reached by November 26," UAC said.

Last week Egypt, the world's biggest importer of wheat, said it would remove Ukraine from its list of suppliers in 2013 after Kiev said it would halt exports from December 1.

UAC said that a possible limit on wheat exports had forced traders to suspend their activities on wheat markets and the volume of daily wheat shipments had gradually fell. The lobby said Ukraine exported about 65,000 tonnes of wheat per day in the period from November 5-12, while the volume fell to 47,000 tonnes per day in November 13-16.