January 6 2014, 10:41 Source: APK-Inform Views: 4832

Key moments of 2013 for the CIS markets of grains and oilseeds

Year of 2013 was not market by some severe changes at the CIS grains and oilseeds markets, but still there were some new moment which we want to refresh in your memory.


 Last year Ukraine and Russia faced some state regulations at the grain and oilseed markets. Let's recall what happened starting with the grain market. While Russian market was rather calm in this aspect and the sole plans to eliminate the duties on grain import weren't brought to life, Ukrainian market saw some changes. Thus, Ministry of Agrarian Policy and Food decided to cancel all limitations on the exports of domestic wheat stocks at the end of April.

At the oilseed market of two countries the situation was opposite. Ukrainian market was steady agitated only once with suggestion of possible elimination of duty on sunflower export. But Verkhovna Rada of Ukraine did not adopt the draft law and kept the mentioned duty unchanged (as a reminder, to date the export duty on sunflower seed in Ukraine totals 10 % of the customs commodity cost).

Some changes happened at the Russian market of oilseed. In accordance with the obligations that Russia has to observe at accession to the WTO, since September 1 the Russian Federation reduced the rate of the export duties on major oilseeds. According to the protocol on Russia's accession to the WTO, after the first year of membership in the reporting organization the export duty on sunflower seed reduced from 20 % (but not less than 30 EUR/t) to 16.62% (but not less than 24.94 EUR/t).

The duty for rapeseed totaled 15% (but not less than 27.13 EUR/t), against 15% (but not less than 30 EUR/t). The duty for soybeans reduced from 20% (but not less than 35 EUR/t) to 13.33% (but not less than 23.33 EUR/t).

 Discussions about creation of Black Sea grain pool between Ukraine, Russia and Kazakhstan which have been holding for several years continued in 2013. That year the representatives of governments of three countries reached the agreement at the meeting of the Committee on economic cooperation of the Ukrainian-Russian intergovernmental committee which took place at the middle of October. So, they agreed in six months there will be completed all required procedures for creating of the grain pool between Ukraine, the Russian Federation and Kazakhstan.

In particular, it is expected that the pool will be established in the form of the Black Sea grain committee - the association, which is open for entry of any other countries. There was also considered the possibility of creating the Black Sea grain exchange.

It is worth mentioning that 2013 was marked by establishing of cooperation between Ukraine and China. Thus, State Food and Grain Corporation of Ukraine received the first tranche of the credit from "ExImBank" at the level of 1.5 bln USD, which will be used for spot and forward purchases of grains for the further exports to China. So, Ukraine started to ship corn to China.

Later at the beginning of September Ukraine and China completed the procedure of certification of Ukrainian agricultural crops - wheat, barley and soybeans, which gives Ukraine the right to export the reporting crops on the Chinese market. On December 5, in China there were signed phytosanitary protocols under which Ukraine received the right to export soybeans and barley on the Chinese market.

Moreover, China imported the first batch crude high-oleic sunflower oil from Ukraine. The batch size totaled nearly 500 tonnes, the shipment was carried in June 2013.

Taking into account the small-scale volume of supplies, it can be assumed that the Asian country decided to estimate the Ukrainian commodity before starting to import more substantial volumes.


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