Memorandum regulating Ukraine's grain export in 2020/21 to be signed on July 1
The Memorandum of Understanding between the Ministry of the Development of Economy, Trade and Agriculture of Ukraine and grain market participants will be signed on July 1 to ensure the projected grain export volume in the 2020/21(July-June) season.
"On June 15 at an online meeting with representatives of agrarian associations and deputy ministers for economic development, trade and agriculture Taras Kachka and Taras Vysotsky, the Memorandum was discussed," the Ministry says in a statement.
By July 1, adjustments to this year's harvest estimates and negotiations on possible export volumes will continue.
The parties to the document plan:
- to carry out measures on the coordination of potential limit volumes of grain export on the basis of a preliminary balance of grain demand and supply in 2020/21 with the further signing of the Annex to the Memorandum;
- to coordinate and make adjustments to export limits, subject to changes in the Annex;
- the ministry reserves the right to initiate state regulation in the event of unforeseen threats to the state's food security, as well as, in case of signing the Annex, and in case of deviation of actual exports from its limits.
Learn more: Wheat Production in Ukraine: 2020 Crop Forecast and Weather Risks
Besides, the Economy Ministry will assist in:
- weekly notification of grain market participants and monthly negotiations on grain volumes exported and those that remained unused;
- holding preliminary (at least two months in advance) consultations with the participants of this Memorandum in order to discuss the most optimal solutions to the situations in case the ministry initiates measures to change the conditions of foreign economic activity, the introduction of licensing regimes, quotas.
As a reminder, wheat prices in Chicago dropped on June 11 after the June USDA report release.