August 14, 2008

 

Ukraine's grain exports likely to hit record 2 million tonnes in August

  
 

Ukrainian grain exports are likely to jump to a record level of more than 2 million tonnes in August, compared with 1.76 million tonnes in July, an agri-consultancy said Wednesday (August 13, 2008).

 

During the next few months, barley, which is very much in demand, would dominate Ukraine's exports.

 

Meanwhile, wheat exports would be limited due to buyer requirements on quality as there is a relatively smaller share of milling wheat in Ukraine's crop this year, UkrAgroConsult consultancy said in a report.

 

The consultancy said Ukraine was able to export up to 3 million tonnes of grain per month, but shipments were hampered by logistical constraints.

 

July's export of 1.76 million tonnes was a record high for the month and the third largest in the last seven years.

 

The consultancy estimates Ukraine could afford to export 18 million tonnes of grain in the 2008-09 season if logistics do not present a problem and there is market demand.  This would include about 8.2 million tonnes of wheat and 6 million tonnes  of barley.

 

This is quadruple of what the country exported in 2007-08.

 

The head of Ukraine's grain traders' union UZA told Reuters this month exports were likely to total 16 million tonnes this season as logistic problems prevented higher sales.

 

Local seaports have an overall capacity to export 26 million tonnes of grain per season, while a lack of rolling stock limited transport volumes to 18 million tonnes of grain -- for both exports and the domestic market.

 

The government forecast exports at 17.5 million tonnes this season.

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