Ukraine: Problems with the grain corridor may affect grain prices next season – Gorbachev

If the grain corridor is not extended, nothing terrible will happen in the next couple of months, because Ukrainian exports have already reached 50 mln tons of grains and oilseeds, and grain stocks are not large.

This was stated by Mykola Gorbachev, the President of the UGA, in his comment to Elevatorist.com at the EURO GRAIN HUB Exchange & Forum 2023.

“Of course, we would like to export through the grain corridor, because it is cheaper than alternative routes, but if it does not work, it will not significantly affect exports in the short term. What I’m really worried about is that the closure of the corridor will send a negative signal to our farmers, and they may adjust their planted areas. This is the most important issue now: how much corn will be planted. Traders vary in their estimates – from 2.5 million hectares to even 3.5 million hectares. If farmers don’t sow corn, it will affect the next harvest and export volumes next year,” says Mr. Gorbachev.

He also answered the question whether the refusal of several EU countries closest to Ukraine to import Ukrainian grain would affect grain prices.

“It will not affect the prices in any way, because these neighboring countries have already purchased grain, and as far as I know, their stocks will last until August. Therefore, we would not be able to sell grain there anyway. Even local local farmers cannot sell grain. Our grain is aimed at those countries that are further away. You see that Ukraine exported 50 million tons this season, and the world price has gone down. Over the past month, it has fallen by more than $50 for wheat. It’s just that the world expected that it would be very difficult for Ukraine to export grain (that’s why prices went up), but Ukraine was able to export such a large amount of grain, and this mowed down prices on the world market,” said the President of the UGA.

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Tags: Black Sea grain corridor, Ukraine, corn, export, grain, prices, wheat, UGA, EURO GRAIN HUB Exchange & Forum