Ukraine: quotas prolongation to effect the domestic market negatively
According to various experts, grain export quotas prolongation by the Government of Ukraine till March 31, 2011, will have the negative circumstances for the domestic grain market.
It may happen that Ukrainian agrarians will start sowing sunflower, soybean and rapeseed, which are not under the state regulation, due to the fact they are not able to sell grains due to the imposed limitations, stated Vladimir Klimenko, the President of Ukrainian Grain Association, on December 10.
V.Klimenko underlined that the Association considers maize export quota regime as unreasonable. Maize quotas should be canceled, stated he.
As about wheat, according to him, in the case of wheat export quotas prolongation, it will be necessary to increase the quotas by few millions tonnes.
When the country exports by 4.8 mln tonnes of maize and wheat each, only then it will become possible to consider the issue of the crops quotas imposition, stated he.
The President of Ukrainian Grains Association noted that to date the market did not face any reaction for the Government decision to prolong grain export quotas. He explained that the volume. by which the quotas were increased. was previously bought by grain traders and does not effect the situation at all.
V.Klimenko also announced that grain traders received licenses for the quotas volumes, distributed on November 12, and to date continue exporting grains.
As it was previously announced, several days ago the Cabinet of Ministers of Ukraine prolonged grains export quota regime till March 31, 2011, and increased quotas volumes till the level of 4.2 mln tonnes. In particular, maize quota was increased by 1 mln tonnes – till the level of 3 mln tonnes, wheat – by 0.5 mln tonnes, till the level of 1 mln tonnes. Barley quotas volumes were not changed – 0.2 mln tonnes.
From October 19 till December 31, 2010, Ukraine imposed grains export quotas at the level of 2.7 mln tonnes, including wheat – 0.5 mln tonnes, barley – 0.2 mln tonnes, maize – 2 mln tonnes, rye and buckwheat – by 1 thsd tonnes each.
On November 12, the specially founded committee distributed 2.182 mln tonnes of quotas between the Ukrainian companies.
Ukraine: 54% of winter crops sowings to face the good conditions
According to data from regions, as of December 9, 2010, winter grain sowings in Ukraine faced good condition throughout 4.42 mln ha, which totaled 54.1% from the general winter grain sowing areas. 3.14 mln ha of winter grain sowings, or 38.4%, faced rather satisfactory condition, marked the Ministry of Agrarian Policy of Ukraine. 615.1 thsd ha (7.6%) of winter crops sowings showed the weak and thinned condition.
Winter wheat showed good condition indices throughout the areas of 3.66 mln ha or 55.2% of the general areas, satisfactory condition – 2.48 mln ha (37.5%), weak and thinned condition – 0.483 mln ha (7.3%). Winter barley showed good condition indices throughout 0.53 mln ha or 43.6% of the areas, satisfactory condition – 0.55 mln ha (45.7%), weak and thinned condition – 0.129 mln ha (10.7%).
Winter rye sowings faced good and satisfactory condition indices throughout 224.7 thsd ha (69.7% of the areas), and 88.7 thsd ha (27.5%), respectively.
As of the reporting date, rapeseed sowing areas faced the good condition throughout 53.5% of the sowings, satisfactory condition – 35.9%, weak and thinned condition – 10.6%.
The general areas of 8.198 mln ha of winter grain sowing areas faced appearance of seedlings throughout 8.17 mln ha.
Ukraine: non-governmental organizations to announce about the necessity of maize export quotas urgent cancellation
According to the non-governmental organizations of the Agricultural Complex of Ukraine, it is necessary to cancel maize export quotas urgently, due to the grain surpluses on the domestic market, stated representatives of the organizations during the press-conference on December 10.
The representatives are totally against the export quotas of maize, stated Leonid Kozachenko, the President of Ukrainian Agrarian Confederation.
According to him, due to maize export limitations, as of November 8, 2010, the price level was lower by 570 UAH/t compared to the level, which could have been with free export trading.
According to the announcement of Nikholay Mirkevich, the President of the Association of farmers and private landowners of Ukraine, to date Ukrainian farmers faced difficulties with maize selling, due to rather low demand. According to him, the situation may cause maize field areas decrease for the harvest-2011.
To date, the price not just fall down, it is the situation, when nobody purchases anything, confirmed Gennadiy Novikov, the Head of the Agrarian Union of Ukraine.
According to his calculations, about 3 mln tonnes of maize need to be exported from the country, otherwise the volumes will press the market. At the same time, agrarians do not have the required resources for sells holding down till appearance of the more profitable price situation.
The experts noted that Ukraine needs to export maize to date, due to the fact that in the spring the world price level will decrease.
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