Ukraine has a significant impact on price situation on the world grain market

Ukraine has a significant impact on price situation on the world grain market

Ukraine has a significant impact on price situation on the world grain market

The FINANCIAL -- According to the USDA estimations, in 2014/15 MY Ukraine took the third position among the major countries-exporters of grains, and covered 10% of the world exports of the reporting commodities - 34.4 mln tonnes from the general volume of 332.5 mln tonnes (in absolute terms).

But according to the US experts, the current role of Ukraine in the global grain trading will continue developing in 2015/16 MY. The share of Ukrainian grains will remain at the same level - 10% of the general world exports (or 30.7 mln tonnes from the expected volume 320.4 mln tonnes).

Thus, Ukraine is a significant player on the global grain market, and has a significant impact on price situation. Therefore, any unpredictable changes in the export volumes of Ukrainian grains may have a significant impact on world prices. The situation with the current epidemic of African swine fever, which is observed in some regions of Ukraine, is one the background for possible development of such changes. As a result, some importers may listen to recommendations of international experts, and reduce the purchasing volumes of Ukrainian grains. Possible deficit of grain volumes available for exports, will become the result of such situation, which will somewhat support the world prices.