Grain and Oilseeds
The volume of corn exports has been agreed
On the last Monday in January, the European Business Association and the Mineconomy agreed on the maximum volume of corn exports for this marketing year together with other associations that signed the Memorandum of Understanding between grain market participants in 2020/2021 MY.
According to the document, the maximum volume of corn exports is set at 24 million tons for the end of this marketing year (until June 30, 2021). The signatories also agreed on the possibility of revising the volume of corn exports after the State Statistics Service of Ukraine publishes official statistics on corn production in 2020.
The EBA Grain and Oilseed Committee experts forecast that the production of corn will be about 31 million tons which is one of the best harvests.
The grain market is extremely important for Ukraine’s economy. Production, processing, and export of grain and oilseeds provide significant cash inflows to the state budget and are important sectors of employment. Besides, agricultural exports play an important role in ensuring the financial stability of the state.
It will be recalled that at the beginning of this marketing year, a Memorandum of Understanding was signed between the Ministry for Development of Economy, Trade, and Agriculture of Ukraine and grain market participants in the 2020/2021 marketing year. The Memorandum is one of the main factors in maintaining the balance between domestic grain consumption and export opportunities for the tenth year in a row. This document aims at ensuring market predictability and flexibility in grain exports, which are important factors for successful export activities. Also, it contains interaction mechanisms of grain market participants, information exchange on the prospects of grain exports, and provides the monitoring of the grain market’s functioning.