January 28, 2015
As the conflict with Russia escalates, Ukraine is faced with having to guard its food supplies, leading grain traders in the country to sign an agreement stating that they will control exports of wheat used to make flour. Hard limits have been set – 900,000 tons will be allowed to be exported in the first quarter of 2015, with an additional 300,000 tons added in the second quarter, according to the head of the Ukrainian Grain Association. If crop conditions are favorable, these numbers may be adjusted upwards. This move by Ukraine follows similar actions taken by Russia, also a major global wheat exporter, which will begin taxing wheat shipments beginning next month in an effort to maintain stockpiles and counteract food inflation and currency instability. In a positive sign, conditions of Ukraine’s winter wheat which was planted in August and September are good. Total exports of milling wheat for the season which began July 1, 2014 will be 7.1 million tons, and exports of lower-grade grain for livestock feed will be 5.7 million tons.
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