Government Prolongs Quotas on Grain Exports until April 2008

Yesterday the government decided to prolong export quotas on grain, setting a total quota at 1.2 mln mt in November 2007-March 2008, including 0.6 mln mt of corn, 0.4 mln mt of barley and 0.2 mln mt of forage wheat. Exports of feed wheat remain prohibited. There will be no grain exports in October 2007. In March 2008 the government will reconsider grain exports, given the results of the sowing campaign for winter crops. Olha Pankiv: The government’s decision to prolong quotas is a reaction to peaking world prices for wheat. The earlier move by Ukraine and Russia to limit wheat exports, coupled with draughts this year in Australia, Canada and the US led to the price hike. Prolongation of export quotas will help to prevent further rises in domestic prices for grain and be positive for Ukrainian bakers, including Khlibprom (HLPR: N/R).