Monday, 17 August 2020

Ukraine agrees wheat export limits for new marketing year

Ukraine's Ministry of Economy, along with representatives from the grain market, today agreed on the maximum volume of grain exports for the 2020-2021 marketing year.

This included wheat at 17.5MMT, and 1,000MT of rye.

The current wheat harvest is nearly finished and should produce a final yield of 27MMT, which leaves about 9.5MMT for domestic consumption, continuing the four-year trend for annual domestic consumption figures to be below 10MMT.

Between 2017 and 2019, the average annual domestic consumption for Ukraine wheat was 9.2MMT; between 2000 and 2016, average annual consumption was 12.1MMT.

I think that’s telling us something.

The ministry retained a caveat that depending on the final data on wheat harvest, the agreement may be revised in the 4th quarter.

The grain memorandum has been in place since 2011.