October 28, 2011


Ukrainian grain traders to surpass competitors


As favoured by the removal of duties and reduction of grain export activities, Ukrainian grain traders may beat Russian competitors on the world grain market, experts of the Ukrainian Grain Association (UGA) noted.


Experts noted that in October, the most favourable conditions have formed for export of wheat and corn from Ukraine. There are no duties and Russia experiences difficulties with transportation of its grain abroad, which allows Ukraine to compensate for losses of previous months.


In particular, Russia as of October 26 supplied, according to the Russian Agriculture Ministry, over 12 million tonnes of grain, mainly wheat. Presently, according to Russian operators, grain export is actually blocked due to lack of the railway rolling stock. Operators are trying to transport grain to ports by automobiles, but this created agiotage. As a result, automobile transportation of Russian grain grew in price 2-3 fold, which lowered down its competitive advantages.


At the same time, according to UGA information, Ukrainian traders hope to ship 10 million tonnes of grain by the year end.


According to preliminary calculations of specialists, till the end of December, it is possible to ship additional five million tonnes, while since July-September supply of grain abroad made up only 3.3 million tonnes, whereas in October - one million tonnes. Therefore, the July-December index may even exceed 10 million tonnes.


If during six months of the marketing year (January-July) Ukraine exports another 15 million tonnes of grain total export volume by results of the year will make up 25 million tonnes, which is fully accessible, the experts believe.


According to UGA experts, Ukraine received a carte blanch. Among suppliers, Bunge Company leads, which took on Nibulon (it ranked first as to exports in 2010-2011 marketing year). Second comes Hlebinvestbud the state operator with private investments and Kernel is third.


The purchase of 100,000 tonnes of Ukrainian wheat by Jordan at the auction at US$288, CIF with supply in December 2011-January 2012 testifies to high compatibility of our wheat.

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