International grain traders refrain from long-term contracts for Ukrainian grains – Derzhzovnishinform
International grain traders mainly refrain from concluding long-term contracts for supplying of Ukrainian grains, declared the State Enterprise National Research and Information Center for Monitoring International Commodity Markets (hereafter – Derzhzovnishinform) on May 13.
According to the announcement, in Ukraine in the period of May 5-9, 2014, the export prices for major agricultural crops almost did not change, and were mainly nominal than real, because traders concluded a very few transactions only. At the same time, importers are mainly interested in Ukrainian maize, while the demand for wheat and barley of both the old and new crops, is very low.
International trading companies refrain making large-scale forward contracts for the supply of Ukrainian grains due to the unstable political situation in the country. Due to the high risk of military operations in the southern and eastern regions of Ukraine, which ports realize the major exports of Ukrainian grains, large-scale multinational corporations prefer describing grain origin in the supply contracts as "Black Sea region”. They are hedged against possible risks in such way, and diversify the supply regions (the Black Sea region includes the Russian Federation, Romania, Bulgaria, etc.). It is worth noting that to date the Black Sea grain is the most competitive commodity on foreign markets.
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