Russia: grain export ban to be justified

According to the analysis, the decision about grain export ban imposition was accepted just in time, otherwise as of the beginning of December 2010, almost 12 mln tonnes of grains could be exported from the country, stated Victor Zubkov, the First Vice Prime-Minister of the Russian Federation, on November 29 in Moscow.

According to him, taking into account that grain production volumes in the country totaled 60 mln tonnes only, grains deficit and the prices increase would be sensible.

According to V.Zubkov, to date there is rather acceptable grains prices level – from 6 to 6.5 thsd RUR/t. But the problem is that grain stocks are distributed on the market unevenly. Grains surplus is in the south regions, and totals 10 mln tonnes, but in October 2010 the regions supplied just only about 400 thsd tonnes to other regions of the country. Due to the fact, the Minister underlined that it is necessary to reach the free grains move on the market. Meanwhile, the Minister reminded that the Government considers the offer about the prolongation of the reduced tariff for railway grains transportation to the regions, suffered from the droughts, till July 1, 2011.

But to date, grains supplies from the southern regions are delayed, due to the registered incidents of African swine fever.

Ukraine and Russia did not sign the contracts for maize supply

Ukraine and the Russian Federation still have not signed the contacts for Ukrainian maize supply on the Russian market in accordance with the previously arranged agreements, stated Nikholay Prysiazhnyuk, the Minister of Agrarian Policy of Ukraine, on November 16.

The Russian party still works out who will import maize from Ukraine – United Grain Company or the direct consumers, said he.

According to him, Ukraine is ready for the future contracts signing. At the same time, the Minister assured that if the contracts become signed, then only under the conditions of maize supply at the market prices.

As a reminder, on October 28, 2010, N.Prysiazhnyuk stated that Ukraine reached the preliminary agreements with the Russian Federation about the supply to the Russian Federation of 2 mln tonnes of maize.

At the same time, the experts of food market look with caution to the plans for purchasing of 2 mln tonnes of maize in Ukraine and stated that it is a clumsy assistance.

Ukraine: Verkhovna Rada to call back the Law Project about quotas selling at the auctions

Ukraine will not realize the auctions for grain export quotas selling, due to the fact that the people's deputy Grigoriy Kaletnik, the author of the Law Project, called the document back.

According to him, there is no point in the auctions, due to the distribution of almost all the quota volumes of grains between grain traders, or should be exported, according to the Intergovernmental agreements.

Taking into account the distributed quotas by the Cabinet of Ministers, and also the Intergovernmental agreements of Ukraine for grain supplies to other countries, it will be impossible to export over 0.5-1 mln tonnes due to the current crop volumes, stated the people's deputy and added that there will be no volumes to sell at the auctions.

As a reminder, the Law Project #7230 dd. October 7, 2010, was introduced for consideration by the people's deputy of Ukraine, by Grigoriy Kaletnik, the Head of the Profile Committee on the Agrarian Policy and Land relations issues.

On November 2, 2010, the Verkhovna Rada of Ukraine accepted the Law Project #7230 as the base during the first reading.

Previously, Nikholay Prysiazhnyuk, the Minister of Agrarian Policy, stated that during the second half of the current MY Ukraine will be able to export not more than 5 mln tonnes of grains, and the export quotas validity term will be possibly prolonged till the end of the MY (July 1, 2011). The Cabinet of Ministers imposed wheat and rye-wheat mixture (meslin) export quotas at the level of 500 thsd tonnes, maize – 2 mln tonnes, barley – 200 thsd tonnes, rye and buckwheat – by 1 thsd tonnes till the end of December 31, 2010.

At the same time, previously Boris Kolesnikov, the Vice Prime-Minister, stated that the Government will accept the decision to sell the quotas in the auctions. According to him, in the case, all the volume could be purchased by the Japanese enterprises, announced their interest in such situation development during the visit to Ukraine. Victor Slauta, the Vice Prime-Minister on the Agrarian Policy, and Nikholay Prysiazhnyuk, the Minister of Agrarian Policy of Ukraine, were against quotas selling at the auctions. They stated that the principle may be imposed only in the case of changing the current legislation, and insisted on the quotas distribution in accordance with the historical principle.

Ukraine to forget about own futures market

It is useless to talk about any serious and real futures bargains on the grain market of Ukraine, having so colossal risks due to the Government unpredictable actions on the market, stated Sergey Stoyanov, the General Director of Ukrainian Agrarian Confederation, while talking about the forward and futures instruments market prospects in Ukraine.

We should forget about the futures market at all, underlined he. Of course, with all the negative consequences of the condition for Ukrainian grain producers.

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