December 6, 2011

Ukrainian ministry reduces grain export forecast

Ukraine's Ministry of Agrarian Policy and Food has reduced the forecast of grain exports in 2011-2012 marketing year (July 2011 - June 2012) by 11-12% to 23-24 million tonnes, as opposed to the previous forecast of 26-27 million tonnes.

Sergei Kvasha, Director of the Department of Economic Development and Agrarian Market of the Ministry of Agrarian Policy, noted that due to unfavourable weather conditions for winter crops sowing areas which were established to date in Ukraine, the Government almost doubled the forecast of the carry-over stocks of milling grains from 2.4 million tonnes to five million tonnes.

Kvasha also noted that according to the supply and demand balances the general carry-over stocks of wheat are estimated at the level of 7.4 million tonnes. However, the government does not intend to limit grain exports from Ukraine.

According the Ministry of Agrarian Policy, as of December 1, 2011, grain exports from Ukraine totalled 6.92 million tonnes, including wheat at 2.15 million tonnes (1.11 million tonnes of milling wheat and 1.04 million tonnes of feed wheat), barley at 1.84 million tonnes, and corn at 2.86 million tonnes. In November Ukraine exported 2.15 million tonnes, which became the best index since the beginning of the marketing year, said Kvasha.