Ukraine: increasing of grain stocks to pressure on prices, and create the deficit of storage capacities

Ukraine: increasing of grain stocks to pressure on prices, and create the deficit of storage capacities

Ukraine: increasing of grain stocks to pressure on prices, and create the deficit of storage capacities

The FINANCIAL -- According to APK-Inform analysts, development of significant grain stocks in Ukraine will lead to some shortage of the specialized storage capacities.

As a reminder, according to the State Statistics Service, as of June 1, 2015, the stocks of grains and sunflower seed at the agricultural enterprises, dealing with grain storage and processing, totaled 10 mln tonnes, an increase of 49% compared with the same date in 2014 (6.7 mln tonnes).

The slower rates of corn exports in the current season caused such situation development, compared with the previous season indices and the policy of grain selling containment by agrarians, in terms of high price volatility. So, in October-May period of 2014/15 MY, Ukraine exported 16.1 mln tonnes of corn, while in the same period of 2013/14 MY, Ukraine supplied 18.8 mln tonnes of the grain on foreign markets, said Andrei Kupchenko, grain market analyst of APK-Inform Agency.

According to him, the current increasing of grain stocks will put pressure on the price situation, which will only intensify in terms of producing of rather high grain harvest volumes.

According to APK-Inform estimations, the general capacity of specialized grain silos in Ukraine totals 46.5 mln tonnes, while the index for storing of the record harvest-2014 should have totaled nearly 65.2 mln tonnes, taking into account rather great length of the harvesting campaign, grain processing and exports. Therefore, agrarians stored 18.7 mln tonnes of grains and oilseeds in adaptated storehouses. In terms of increasing of the carry-over stocks and high harvest volumes, the problem of storing capacities shortage significantly escalates, said the analyst.