Ukraine stands a chance to dominate in Saudi Arabia wheat imports
The USDA analysts project that a key global importer of cereals Saudi Arabia in MY2018/19 may import 3.4 million tons of wheat, 5.2 million tons of corn and 8 million tons of barley, APK-Inform reports.
"At the same time, Ukraine, which is the key supplier of barley to Saudi Arabia, securing over 22% of total grain imports in MY2017/18, may reaffirm its positions in this segment this season," the report says.
The main suppliers of barley to Saudi Arabia following the results of MY2017/18 are Russia, Germany, France and Australia. Canada was one of the top ten suppliers of barley to Saudi Arabia, with which the Arab state in early August 2018 severed trade relations in the grain segment.
"The export potential of Ukrainian barley market is estimated at the level of the previous season (4.1 million tons), which will at least maintain grain export volumes," experts project.
As for wheat, Germany and Poland are the leaders in supplies, the export potential of which will also decrease in MY2018/19.
"No wheat deliveries were made from Ukraine to Saudi Arabia in MY2017/18, but given the current situation, this market can be quite promising for Ukrainian grain exporters," experts say.
Previously it was reported that the Ministry of Agrarian Policy and Food of Ukraine and the grain market participants had signed the Memorandum of Understanding for MY2018/19. The total agreed indicative volume of wheat exports is 16 million tons, that is milling and fodder wheat will be exported in equal volumes — 8 million tons each.