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Grain prices in Ukraine expected to peak in early 2021
12 January 2021, 11:00
In January-February 2021, a significant increase in grain prices is expected in Ukraine. This will be brought about by rising demand for grains from China, owner of the agroholding Ukrlandfarming Oleg Bakhmatyuk says.
"I think the corn price will go higher. China's position here is crucial. The country also restocks its soybean reserves. Plus they have huge dollar reserves, which will depreciate in the next 3-4 years. They might want to trade this dollar in raw materials and procure corn, wheat and soybeans, which will affect world markets for at least the next two years," Oleg Bakhmatyuk noted in an interview with AgroPolit.com.
He also stressed the need to develop mechanisms that would provide compensation for livestock farmers, as they will suffer the most from rising prices.
Related story: Thumbs up or Thumbs Down: Does the Booming Corn Export Endanger the Domestic Market?
"Under such conditions, dairy and cattle production will in fact cease to exist. The negative impact will affect the production of chicken, pork and eggs. This will also be felt by the consumer. In my opinion, the government should not use regulatory methods. It will not keep us away from the world market price. The government needs to solve the local issue to avoid shortages of grains of certain groups", Oleg Bakhmatyuk concluded.
In Q4 2020, corn export shipment from Ukraine totalled USD 1.64 bln, 8% higher YoY.
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