Ukraine government upgrades grain export outlook

Ukraine’s Agricultural Ministry expects another 6.6 mmt in grain exports by the end of the 2012/13 marketing year in addition to the 19 mmt already exported, the Ministry reported on its website on March 19. This suggests exports would total 25.6 mmt, or 9% (2.2 mmt) above the earlier limit set by the Ministry. Ukraine has the potential to export a total of 15.8 mmt of corn, with 10.1 mmt already exported, the Ministry reported.

Alexander Paraschiy: The implicitly loosened export restrictions will be good for Ukraine’s 1H13 trade balance, which can gain an additional USD 0.6 bln. Grain traders like Kernel (KER PW) can also benefit from the extra export volumes. The export caps increase should also encourage investors in Ukrainian farming companies, as it implies the Ministry has more reasons for optimism and confidence in a good grain harvest for the next season.