10 October 2011
On Friday, Ukraine’s parliament abolished export duties on wheat and corn, but retained the export duty on barley. The law still requires the signature of the president and should be effective immediately following official publication. Duties for cereals had been in place since June 1, 2011: maximum of 9% of the value or EUR 17 per mt for wheat, maximum of 14% or EUR 23 per mt for barley and maximum of 12% or EUR 20 per mt for corn. Yegor Samusenko: MHP (LSE: MHPC LI, BUY) and Industrial Milk Company (WSE: IMC PW, N/R) should benefit the most among farmers, as they have more corn in their crop structure than others (40% and 42%, respectively). Kernel (WSE: KER PW, N/R), as trader, should effectively pocket part of the duty, as the spread between domestic and global grain prices during July-September reflected the duty. For more details, please look for our flash note later today.