October 4, 2011


Ukrainian grain exports rise in September



Ukraine's grain exports increased to approximately 1.48 million tonnes last month as compared with 1.4 million tonnes in August, according to the director of Ukrainian Agrarian Confederation Serhiy Stoyanov said on Monday (Oct 3).


According to Reuters, Stoyanov said the total volume had included about 800,000 tonnes of wheat.


He said Ukraine had exported about 3.3 million tonnes of grain in the first three months of the current 2011/12 season against 3.5 million in the same period in 2010/11.


Stoyanov said the former Soviet republic exported 1.5 million tonnes of wheat in July-September 2011 while it sold abroad 1.26 million tonnes of the commodity in July-September 2010.


Ukraine, which expects the grain harvest of 50-53 million tonnes this year, could export about 24 million tonnes of grain in the 2011/12 season, but export duties and aggressive Russian exports could cut the volume.


Russia, which exported about 3.3 million tonnes of grain in August, could export 25 million tones of grain in the 2011/12 season, according to Russian Grain Union.


Grain traders' union UZA last month said that the exports could have been at six million tonnes in the first two months of the 2011/12 season but export duties had reduced shipments to about two million tonnes.


Grain export duties were introduced in July to replace last year's export quotas, instituted to protect home markets after severe drought.


Export duty on wheat is 9% but no less than EUR17 ($22.45) per tonne. Export duty on barley is 14% and no less than EUR23 (US$30.37) per tonne. Export duty on corn is 12% and no less than EUR20 (US$26.41).


The agriculture ministry has asked the government to cancel the restrictions while the economy ministry proposed the cabinet extend the duty for 2012 and impose export duties for rapeseed and soy.


The ministry has proposed the following new export duties. Rapeseed will be at 9% but no less than EUR15 (US$19.80) per tonne whereas soy is at 12% but no less than EUR33 (US$43.57) per tonne.


Ukraine is the world's biggest exporter of sunoil and it also ships abroad more than one million tonnes of soy and 1.4 million of rapeseed per season.


The head of Russian Grain Union, Arkady Zlochevsky, said Russia had exported 9.1 million tonnes of grain between July 1 and October 1, including around 3.8 million tonnes in September alone.


Zlochevsky added that Russia is conquering new markets in South East Asia, including Indonesia, Thailand and some other states.


Russian grain dominates its traditional Ukrainian market.


"Rising supply of Russian low and medium quality wheat to South Europe is of greater interest. Earlier countries of this region traditionally exported wheat from Ukraine," UkrAgroConsult consultancy said in a report.


"But in the new season Ukrainian wheat has lost its advantages after introduction of export duties and abolishment of VAT refund. Consequently Russian wheat has become more competitive".


Ukrainian soft milling wheat 11.5% protein is traded at US$240-245 per tonne FOB Black Sea, while feed wheat costs about US$238 per tonnes FOB Black Sea.


According to UkrAgroConsult, Russian soft milling wheat costs US$210 per tonne FOB Rostov (Azov Sea) and US$255 FOB Novorossiysk (Black Sea).

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