August 18, 2011

 

Ukrainian grain exports will not exceed 1.2 million tonnes

 

 

Ukraine's August grain exports are unlikely to surpass 1.2 million tonnes, down from 1.3 million tonnes in the same month last year, Ukraine's Grain Confederation (UAC) industrial lobby said Wednesday (Aug 17).

 

Ukraine exported 12.7 million tonnes of grain in the 2010/11 season and the government said the ex-Soviet state could export 21-23 million tonnes this season, building after the previous year's crop was depleted by adverse weather.

 

"(Export) of 1.2 million tonnes (a month) is just a half of the volume needed for markets to meet export expectations," said UAC director Serhiy Stoyanov.

 

He said Ukraine exported about 600,000 tonnes of grain in the first half of this month.

 

Farm Minister Mykola Prysyazhnyuk said last week that Ukrainian grain exports were down by 30% to 760,000 tonnes in the first 40 days of the 2011/12 season compared to the same period in 2010/11.

 

The exports represent a pick-up from the pace seen in July when shipments were down 81% on-year, but were still seen as disappointing by the minister. He said the ministry would consider how to tempt traders to boost shipments.

 

But traders said the current grain exports duties were the main reason for the small shipments.

 

In July, Ukraine replaced grain export quotas with export duties.

 

Export duty on wheat amounts 9% but no less than EUR17 (US$24.48) per tonne. Export duty on corn is 12% and no less than EUR20 (US$28.81).

 

Ukraine, which consumes about 26 million tonnes of grain per season, is likely to boost its grain harvest to 51 million tonnes in 2011 from 39.2 million.