Ukraine showed higher grain export volumes compared to Russia, but lower qualitative indices

In September 2009, grain export volumes from Russia totaled nearly 2 mln tonnes as opposed to 2.2 mln tonnes in August of the current year. At the same time, railway grain shipment grew from 550 to 600 thsd tonnes, informed the analytical center of “Rusagrotrans”.

From the beginning of August, grain exports from Russia showed negative dynamics. In August, the market showed the decrease of grain shipment volumes by 7% compared to August 2008, from 2.4 to 2.19 mln tonnes.

During first three months of 2009/10 agricultural year, Russia exported nearly 5.5 mln tonnes of grains as opposed to 6.3 mln tonnes, during the same period of 2008, which corresponds to the export decrease of nearly 13%. Ukraine also lowered grain export volumes by 4.6%, from 6.5 to 6.2 mln tonnes. As a result, Ukraine showed higher grain export volumes compared to Russia, and took the third place in the rate of largest world grain exporters, Russia took the fourth place respectively.

Devaluation of UAH by over 10% during recent months assisted to keeping of grain export supplies from Ukraine at the high rate. At the same time, the quality of Ukrainian grain exports became lower compared to Russian indices. The share of Ukrainian feed wheat in the general export volume exceeded the level of 70%, Russia feed wheat share totaled nearly 20% respectively.

In the terms of almost equal purchasing grain prices of 115-116 USD/t and transport costs (30 USD/t), grain shipment costs in the ports of Novorossiysk and Tuapse are higher compared to Ukrainian deep-sea ports, due to limitations of the present infrastructure.

To date, the general capacities of two Russian deep-sea ports totals 12 mln tonnes, against nearly 30 mln tonnes of Ukrainian ports. As a result, as of the end of September, the prime cost of Russian grains FOB even in terms of VAT retracement totaled nearly 160 USD/t, the price cost of Ukrainian grains – nearly 156 USD/t. The world bid prices totaled 158 USD/t.

Besides, Russia has problems with elevator storing capacities: in terms terms of the harvest volumes of 108 mln tonnes in 2008, grain storing capacities in the country totaled 90 mln tonnes, that is why elevators increased prices by 1.5 times before the beginning of the harvesting campaign-2009.

According to Oleg Rogachev, the first deputy general director of the company “Rusagrotrans”, the development of new ports and foundation of new elevators in Russia will allow increasing competition rates on the market and lowering infrastructural costs, which will also lower the prime cost of Russian grains. 

Source: AgriMarket.Info