January 21, 2021
Ukrainian grain traders oppose call to limit corn exports
Ukrainian grain traders said they see no reason why corn exports should be restricted for the 2020/21 season, a move called for by livestock feed and meat producers to avoid higher feed prices, Reuters reported.
The decision to limit corn exports for 2020/21 marketing season to 22 million tonnes will be decided on January 25 by Ukraine's economy ministry and agricultural unions.
Last week, Ukrainian livestock and poultry producers' associations urged the government to limit corn exports to 22 million tonnes to avoid an animal feed shortage.
Taras Vysotskiy, Ukraine's Deputy Economy Minister, said the it is unclear if the proposal will be accepted.
One foreign trader, speaking on condition of anonymity, said a restriction on corn exports could result in turbulence in the market worsened by decisions on export duties from Russia.
Russia plans to impose a higher export tax on wheat from March 1. The move looks to stop a rise in domestic food prices triggered by the COVID-19 crisis. Russia is one of the biggest wheat exporters in the world.
The UGA traders union said there are more than 21 million tonnes of corn of the new harvest in Ukraine, and as there no deficit there is no reason to limit exports.
The union said Ukraine has already passed the peak of corn exports, with shipment rates on the downtrend.
As of January 18, Ukraine has exported 10.5 million tonnes of corn, 3.5 million less year-on-year.
The country's corn harvest dropped to about 29.3 million tonnes last year, compared to 35.9 million in 2019. Producers are concerned that large-scale exports could significantly lower stocks and increase prices.
Ukraine's economy ministry said the country needs about 7.5 million tonnes of corn for domestic use.
In November last year, swine and poultry growers in Ukraine failed to convince the government to impose a maximum volume of corn available for export in the 2020/21 season because of rising fodder costs.
- Reuters
