September 14, 2010

 

Ukraine's high wheat prices hinder export to Russia

 
 

Traders will not commence exporting Ukrainian feed wheat to Russia unless there has been a fall in prices, Kiev-based analyst ProAgro said Monday (Sept 13).

 

Russia expects to harvest a little more than 60 million tonnes of grain this year, down from 97 million in 2009. "Ukrainian traders have proposed feed wheat at US$200-US$210 per tonne while Russian buyers are ready to buy at US$150-$170. But this gap might be reduced in the near future and Ukrainian grain could win additional market," ProAgro consultancy said.

 

Ukraine had not exported wheat to Russia in the first two months of the new 2010/11 season. The country sold just 160 tonnes of wheat to Russia last season.

 

Ukraine, also hit by poor weather this year, harvested about 17 million tonnes of wheat in 2010 in clean weight compared to 20.9 million in 2009, according to farm ministry's data. It consumes about 12 million tonnes of wheat per season.

 

Last month, Russian analysts said Russia may need to import up to six million tonnes of grain in the current 2010/11 crop year to compensate for its worst drought on record. The volumes may include wheat and feed barley from Kazakhstan, corn from Ukraine, feed barley and rye from Belarus, malting barley from Nordic countries and France, buckwheat from China and rice from Vietnam, China and Thailand.

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