Ukraine Grain Exports Climb to Record

With another year of large grain production, as well as substantial carryin stocks, Ukraine’s grain exports are expected to climb to a record 12 million tons – making it the world’s sixth largest exporter. International grain trading companies have invested heavily in upgrading and expanding port facilities and infrastructure, building new terminals and renovating older, outdated terminals. Ukraine now has four ports with grain terminals capable of handling Panamax-sized vessels. Grain shipping capacity has increased sharply in the past few years and is now estimated at more than 20 million tons a year. For wheat, exports in recent months have been very strong, with large amounts going to the European Union (especially Spain) and other Mediterranean markets.

However, concerns have arisen over next year’s crop as dryness at planting cut area. This has caused prices to rise considerably in recent months (with local milling wheat prices up $29 per ton and feed wheat prices up $20 per ton since September), and could result in slower exports during the second half of the trade year. For barley, Ukraine is once again expected to be the world’s second largest exporter, accounting for a quarter of world trade. Sales to Saudi Arabia (which typically accounts for half of Ukraine’s total barley shipments) continue to strengthen and displace EU supplies. For corn, better quality and strong nearby demand in markets such as Iran are expected to keep exports at record levels.