Government of Ukraine intends no wheat export curb

The Government of Ukraine does not plan to limit wheat export from the country in 2019/20 as grain stocks are enough to cover the internal market's demand. This was announced by Prime Minister of Ukraine Denys Shmyhal during a speech in the Verkhovna Rada (Parliament) at an extraordinary plenary meeting held today, May 13, АgroР reports.

"Today Ukraine is the breadbasket of the world, not only Europe. We have a 6-month grain reserve. We work with farmers and relevant agricultural companies, we conduct a weekly analysis of the situation with export policy and grain export, etc. If we do not export the surplus production today having a 6-month grain reserve, which is exactly enough before the new crop, we will have grain suitable neither for consumption nor for export. Agricultural companies and the Ukrainian budget will lose foreign currency revenues," Denys Shmyhal stated.

The Prime Minister stressed that the Government systematically monitors the preservation of six-month stock of food wheat in Ukraine rather than a three-month.

Decreasing price trends are observed on the market of food wheat driven by a number of factors on the external market (improved weather conditions and the prospect of gross grain yield in the EU countries, Ukraine and Russia).

USDA in its latest report increased the projection for wheat carryovers in Ukraine in 2020/21 to 1.51 mln t vs. 1.23 mln t projected in 2019/20. Ukraine's wheat export projection in 2020/21 was cut by 1.5 mln t to 19 mln t vs. the expected 20.5 mln t in the 2019/20 season.

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