Ukrainian Government completed accepting of applications for maize exports

On November 30, 2010, the Ministry of Economy of Ukraine declared about completion of acceptance of the applications for receiving of remaining quotas for exports of maize from the country.

It is expected that the Committee will declare the results of quotas distribution among market participants on December 2. At the same time, Ukrainian market participants waited for promulgation of the results at the day of ending of acceptance of the applications.

At the middle of November, the Government distributed quotas for maize exports at the level of 1.414 mln tonnes (from the initial offered volume of 2 mln tonnes), wheat – 500 thsd tonnes, barley – 200 thsd tonnes. The authorities distributed quotas for wheat and barley exports in full measure.

During the previous grain export quotas distribution, the majority of large-scale international companies, such as Cargill, Toepfer International, Noble Group, Louis Dreyfus, Soufflet Group, did not receive the quotas at all.

Russia to import grains from Ukraine and Kazakhstan

The Russian Federation is able to import grains from Ukraine and Kazakhstan, announced Pavel Skurihin, the President of the National Union of Grain Producers.

According to him, the current year grain production volumes will total 60 mln tonnes. According to various estimations, the last season carry-over stocks varied from 21 to 26 mln tonnes. And the stocks are very important resource for the country to date. That is why, taking into account the domestic consumption level of grain of 77-78 mln tonnes, P.Skurihin can see that the country will enter the following agricultural year (from July 1, 2011, to June 30, 2012) with the minimal or absolutely zero carry-over stocks. And according to the standards, the country should have grains stock for at least 2 months, not less than 10-12 mln tonnes. That is why, the certain grain volumes will have to be imported, stated the expert, and noted that the Russian Federation has the deficit of feed crops volumes – barley and maize.

Thus, according to him, it will be necessary to import not less than 5 mln tonnes of grains.

It is possible to import barley from Kazakhstan, and maize from Ukraine. Kazakhstan, the same like Russia, suffered from the summer droughts, but Kazakh grain balance is the surplus. Barley prices are rather high there. But Russia will fave the economy on the logistics, while purchasing barley in Kazakhstan, but not in far abroad countries, underlined P.Skurihin.

While answering the question about reasonability of feed grain selling from the Intervention Fund of the Russian Federation, the President of the National Union noted that now it is better to purchase grains of new crop abroad, in particular in Kazakhstan and Ukraine.

In the spring the world prices can face the increase. It is necessary to start to use own stocks, when other grain sources on the domestic and the nearest abroad markets will start to run low, stated P.Skurihin.

World market to feel Russian grains absence

According to Vins Peterson, the Vice President of the American Wheat Association, the world market has already felt grain deficit at the level of 15-20 mln tonnes, due to the absence of Russian, Ukrainian and Kazakh grain export volumes.

At the same time, V.Peterson stated that Russia can renew own positions on the world grains market rather fast.

According to him, the ban will cost the certain funds for Russia. The future year crop volumes decrease may become the payment, stated Edward Allen, the leading economist of the United States Department of Agriculture. Next year crop volumes will be less compared to the volumes, which could be without the grain export ban imposition, stated the economist.

On its turn, Oleg Aksyonov, the representative of the Ministry of Agriculture of the Russian Federation, stated that the grains export ban, imposed by Russia from August 15, 2010, was the right decision. It was accepted first of all, in order to provide the sufficient grains volumes to the country in the conditions of the hardest summer droughts.

According to Arkadiy Zlochevskiy, the President of Russian Grain Union, Russia is able to renew own lost position on the world market, if it is able to offer grains at the lower prices.

Russia: Government appeals to agrarians to sell grains on the market more active

According to Vladimir Putin, the Prime-Minister of the Russian Federation, the low rates of grain selling on the domestic market are explained by desire of the certain farming enterprises, where rather good crop volumes were harvested, to earn, to wait, while the market rises up, the prices increase, and then to sell grains on the expensive market. The Minister stated it on November 29.

V.Putin noted that the Government of the Russian Federation has the sufficient number of instruments in order to hold grain prices, and will not allow the violent increase of prices.

While talking about the possible grain selling from the Intervention Fund, the Prime-Minister noted that the Government examines the possibility to date.

V.Putin also announced that according to his request the Governments of neighboring countries reserved the necessary volumes of grains for the Russian Federation needs. If it is necessary, if if the authorities of Russia see that the prices face an increase, then Russia will realize the agreements and supply the additional grain volumes on the domestic market.

At the same time, he noted that there is rather acceptable grains prices level – from 6 to 7 thsd RUR/t on the market. Due to the fact, V.Putin appealed to market participants that they should not risk, and should not wait for anything, and should not spend the additional funds for grain storage and safety provision, they have to start to work.

On his turn, Victor Zubkov, the Vice Prime-Minister, announced that several enterprises (first of all, from the Siberian region) hold grains till the spring, and it is wrong.

To date, there are rather acceptable prices on the grain market. Due to the fact, the Minister underlined that it is necessary to reach the free grains move on the market.