Current situation on Ukrainian corn market could shatter confidence of traders to forward contracts, declared the President of the Ukrainian Grain Association, Mykola Gorbachev within the online conference Corn-2020: deal of default?!
“Traders will start purchasing corn only when the grain is delivered to the buyer. This will result in lower financing for farmers. Moreover, it will prevent fixing of price before the price decline during the harvesting campaign. Thus, the whole sector will get less money”, - he supposed.
M.Gorbachev pointed out that lower financing from traders will throw Ukraine 5-10 years back as to the production technologies.
“We will return to the production of feed wheat only. We will again produce low-yield crops that do not meet high demand. That is why I want to appeal for everyone to execute his or her contract obligations. Such injudicious actions could cut back grain production. Investor puts his money into safe place. Ukraine is rather risky country taking to account our political turbulence, climatic changes. To create the most favorable conditions for investments should be the aim of those who work in agriculture”, - M.Gorbachev emphasized.
