November 28, 2012

 

Ukraine goes below maximum volume in wheat exports

 

 

As of November 26, Ukraine exported 5.42 million tonnes of wheat or 80,000 tonnes below the maximum volume of exports agreed by traders and the Agriculture Ministry for the 2012-13 season.

 

Ukrainian traders said last week they were ready to halt milling wheat exports on an informal basis, as they approach a critical limit, in order to protect the domestic market after a poor harvest.

 

The analyst ProAgro said on Tuesday (Nov 27), the volume included 4.583 million tonnes of milling wheat. It also said additional 256,000 tonnes of wheat were collected in port silos for forthcoming shipments while another 126,000 tonnes of the commodity were already on board. But market players say the informal export deal is not likely to work.

 

"Traders are likely to export wheat by small volumes even after the exports reach 5.5 million tonnes. Exports will continue until authorities impose an official ban or make shipments impossible," a major foreign trader said.

 

Ukraine in the 2010-11 season imposed informal export barriers on wheat after a disappointing harvest. Exporters faced huge costs because they failed to meet contracts.

 

Wheat harvest fell by a third to 15 million tonnes this year due to poor weather during the sowing and wintering. The former Soviet republic consumes 12 million tonnes of wheat per season.

 

Ukraine exported 1.3 million tonnes of wheat in September, 1.4 million tonnes in October and 1.3 million tonnes in November 1-26, Agriculture Minister Mykola Prysyazhnyuk was quoted on Tuesday (Nov 27) as saying.

 

According to the data provided by the Agriculture Ministry, Ukraine exported a total of 11.5 million tonnes of grain so far this season, including 5.4 million tonnes of wheat, 4.1 million tonnes of corn and 1.7 million tonnes of barley.