Grain export restrictions in Black Sea region

Ukraine

On March 27 the Economic Development Ministry of Ukraine proposed limiting this season’s wheat exports to 20.2 MMT. Clearly defined boundaries should increase export predictability, ensure the stability of the domestic grain market and prevent flour prices from rising. 

On March 31 together with grain market participants a Memorandum was signed in which the indicated volume was fixed for the period until June 30, 2020.

As of April 1, from the beginning of the season, 17.9 MMT of wheat were exported from Ukraine, not including flour. The established limit will allow exporters to fulfill previously concluded contracts, but new transactions should be concluded with caution.

Russia

Russian Ag Ministry has proposed to restrict grain exports from April to June inclusive. The size of the quota was estimated at 7 MMT. On March 30, the Economic Development Ministry supported this idea. UkrAgroConsult’s forecast for this period of time is within 6-7 MMT. As of March 29, from the beginning of the season, 27 MMT of wheat were exported from Russia.

Kazakhstan

On March 30 Kazakh Ag Ministry informed that export quotas on wheat and wheat flour will be imposed. According to preliminary information, the April export quotas may amount to 200 KMT for wheat and 70 KMT for wheat flour. The previous ban on the export of wheat flour was canceled.

EEU

On March 31, a meeting of the Eurasian Economic Commission was held, during which was made a decision to ban the export of rye, rice, buckwheat, flour and other grain production products. This decision becomes valid in 10 days for the period till 30 June. This document must be ratified by the participating countries. As a reminder, the EAEU includes Russia, Kazakhstan, Kyrgyzstan, Armenia and Belarus.

More detailed information on the latest trends in grain exports, supply and demand balances with breakdown by crop, price behavior, crop conditions and progress in harvesting/planting in the countries of Black Sea Region is available to subscribers for Online Analytics "Black Sea Grain" in the new innovative tool for agri market participants – AgriSupp by UkrAgroConsult. Subscribe to a 14-day free trial!!

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