Ukraine notes significant drop in grain prices
The new Marketing Year (MY) 2013/14 for Ukraine has started with good production numbers and a signi…The new Marketing Year (MY) 2013/14 for Ukraine has started with good production numbers and a significant drop in grain prices.
In general wheat quality is good and majority of exports so far have been milling wheat. Corn quality may be lower this year due to the extensive rains in September and beginning of October. In addition, some corn may be left behind in the fields or not harvested at all.
Grain trade is picking up speed as Ukraine has abundant exportable supply. Some slowness with grain transportation to the ports has been observed at the start of the new MY mainly due to administrative issues (e.g. railroad slowness, grain certification discrepancies, etc.).
The shipments that have been executed for wheat show some shift in the main buying markets. South Asian countries have been gaining a larger share of Ukrainian exports so far and are expected to remain in the upper rankings. China trade is starting with the first shipment of corn being executed in October-November 2013 by the State Food and Grain Corporation (SFGC).
The Minister of Agriculture in his recent public statement has indicated that no export restrictions are to be expected in the near future. The industry and the State have been communicating well on trade balances and potential trade issues.
Next year’s crop is already being planted. Winter wheat and barley plantings have been advancing, but with a delay due to continuous September rains. Planting has picked up in mid-October.