Stock exchange news. Ukraine is one of the five world market leaders of corn export. Ukraine occupies the 9th place among the countries producing grain crops. Every year almost half of the country’s crop is exported into the countries of Northern Africa, Middle East, Spain, and, since recently, Bangladesh, Philippines, and South Korea. The overall number of Ukrainian partners in trade of grain crops amounts to fifty.
Taking into consideration the increasing domestic demand as well as the export potential of the country, during the last four years there has been a continuous increase of crop and international trade. In 2011 the crop is going to increase by about 7% – up to 12.7 million tons.
According to preliminary forecast of IA “APK-Inform”, gross yield of corn in 2011 will increase up to 12.7 million tons, which will become the record crop of this kind of crop for many years. The expected gross yield in combination with transit stock, which has been evaluated by the experts of the agency in the volume of 738 thousand tons, gives the general offer of corn for the new 2010/11 marketing year at the level of 13.5 million tons, which is 9% more than the offer at the beginning of 2010/11 marketing year. What is more, it is a record high number in comparison with previous seasons. The export potential of Ukraine in the new season concerning corn is estimated at the level of 6.3 million tons.
In October 2010 quotas on export of grain crops from the country were introduced. On October 19 the bylaw of the Cabinet of Ministers on introducing the regime of grain crops quota allocation in Ukraine was published. On March 30 the Cabinet of Ministers decided to prolong the process of grain crops quota allocation till July 1, 2011.
High world prices as well as adjustment of grain crops export to the new tax code influenced the decision making process of Ukrainian government on May 25 concerning cancelling the quota on grain crops export.
The Chair of Derivatives Trading of Masterforex-V Academy.
