June 1, 2011

 

Ukraine and Russia return to global grain market

 

 

Both Ukraine and Russia settled on coming back to the global grain market, according to the media.

 

Almost simultaneously, the governments of two countries announced cancellation of grain export limitations. The cabinet of ministers of Ukraine cancelled the quotas on grain exports in the country on May 25 whereas Vladimir Putin, Prime Minister of the Russian Federation, said on May 28 that Russia would not renew the ban on grain exports after July 1, 2011.

 

Despite imposition of the mechanism of quotas and licensing of grain exports in the season-2010/11, Ukraine managed to keep the place in the top-10 of the world leading exporters of grains at three positions namely wheat, corn and barley.

 

According to analysts of APK-Inform Agency, the export potential of Ukraine in the season-2011/12 to date is estimated at the level of 18.3 million tonnes, including wheat, barley and corn volumes.

 

In the season-2009/10, the list of the main countries-importers of Ukrainian wheat included Bangladesh, South Korea, Spain, Tunisia and Egypt. Due to closing of grain exports by Russia in 2010/11 MY, the geography of exports from Ukraine changed, and the main deliveries of wheat came to Turkey, Egypt, Israel, Bangladesh and Libya.

 

Taking into account the export ban for grains, Russia, which is the member of five leading countries in production of wheat and barley, also stayed in the top-10 of the world exporters of grains. According to analysts of APK-Inform Agency, after cancellation of the export embargo, Russia will be able to export over 15 million tonnes of grains in the new season. Before closing of export trading with grains in the season-2009/10, the list of the main countries-importers of Russian wheat included Egypt, Turkey, Syria, Iran and Libya.

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