Each marketing year is unique, and brings new surprises to the market of agrarian products. But the growing demand for Ukrainian grains from the Asian region is the key feature of the season-2016/17.
On the one hand, reduction of wheat production in India contributed to the need for import growth. India focused on Ukrainian wheat, due to its competitive strengths. After cancellation of the import duties, India became the major importer of Ukrainian wheat, and purchased more than 3 mln tonnes of the grain. The major issue is whether India to reduce the imports, after increasing of the planted areas under winter wheat, and restoring of the grain production.
On the other hand, in 2016/17 MY the Ukrainian market of corn faced a surprising interest from Iran. Since the problems with Brazilian corn supplies, Ukraine received additional demand from Iran for corn deliveries. In terms of such foreign demand and domestic troubles with logistics, in October-December period in Ukraine corn prices did not reduced in such significant way, as the global prices.
For a culture like barley, the Asian region is always the key. Saudi Arabia, Libya and China are the main buyers of Ukrainian barley. In 2016/17 MY, China did not demonstrate a high demand for Ukrainian barley, and preferred purchasing the cheaper Australian grain. However, in mid-May 2017 China purchased nearly 200 thsd tonnes of new crop Ukrainian barley. Return of the country on the Ukrainian export market may become a catalyst for a bullish trend development.
You can receive more detailed information about development of the Ukrainian-Asian relations within frames of the sixteenth international conference Grain & Maritime Days in Odessa, which to be held in Odessa on May 23-27, 2017.
At the conference, a grain and oilseed markets analyst at Agritel, Andrey Novoselov makes a report on trends of the grain market in Asia, and prospects for Ukraine's trade with the region.