IGC Improves Corn Export Forecast for Ukraine

KYIV, Ukraine, August 7, 2013 /PRNewswire/ --

One of the world's largest corn exporters Ukraine is likely to export 15.5 million tons of corn in 2013/2014, according to the International Grains Council. The organization improved Ukraine's forecast by one million as its production prognosis rose from 23 to 24 million tons.

Currently, Ukraine is world's fourth largest corn exporter in the world - right after the U.S. (with 31 million tons prognosis), Argentina and Brazil (with 21 million tons each). It is estimated that in 2013/2014 the U.S. will produce 350 million tons of corn, Brazil - little over 79 million tons, and Argentina - 30.

Comparably, world total 2013/2014 corn production is estimated at more than 942 million tons; the forecast for global corn import is over 98 million tons. This allows to estimate Ukraine's forecast share in corn export at nearly a quarter of the market in 2013/2014.

According to the IGC report, the U.S., China, and Ukraine expect record corn crops. The forecast for world corn production year on year increase is 10 percent in 2013/2014. Consumption is rising by five percent, "but is unlikely to match the 2007/2008 record as good crop prospects in some countries will cap overall import needs," states the report.

The forecast for total grain export by Ukraine in 2013/2014 is more than 25 million tons. Ukraine is behind Argentina (29), Australia (25.4), and the U.S. (64). Total EU grain export is also among the leaders - it may reach 34 million tons. Being a major wheat exporter, Ukraine may export 7.2 million tons of wheat.

Ukraine has recently established cooperation with China regarding corn supply to the Asian country. This summer China bought 120,000 tons of corn from Ukraine, reports Bloomberg. To help boost Ukraine's corn production, in July 2012, China provided a USD 3 billion loan for Ukraine's agricultural sector. The loan followed the currency swap deal between the central banks of the two countries, signed in June of 2012. The deal is worth CNY 15 billion (USD 2.4 billion).

Corn production is a traditional industry for Ukraine. Major corn-producing regions are located in the very heart of the Eastern European country.