Ukrainian corn set to hit records in global grain markets15.05.12
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Fueled by record harvests, Russia and Ukraine are expected to surge to the top ranks of the global export markets for wheat and corn in the coming years, a development that will open up new investment opportunities in commodities and equities.
The surge in Russia, which will see its exports of wheat explode to more than 20 million metric tons this year from four million in the 2010-2011 year, is powered by robust production and inventory, rising global demand and lower domestic prices. Meanwhile, Ukraine will jump into the top ranks of corn exporters thanks to favorable climate changes, rising demand and higher prices. A weaker U.S. harvest is also expected to help.
“We’ll split the export markets between us a bit as Russia will sell more wheat, while for Ukraine, it’ll be barley and corn,” said Volodymyr Lapa, the general director of the Ukrainian Agrarian Business Club, the nation’s leading agricultural lobbyist.
“In the midterm perspective, the share of Ukraine, Russia and Kazakhstan in seven to 10 years will grow to 30% to 35 % of global wheat exports,” as compared with 12% to 17 % currently, he said.
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