OREANDA-NEWS. December 22, 2009. According to the Ukrainian Grain Association data, Ukraine exported a mere 0.7mnt of grain in the first half of December and 12.2mnt of grain since the beginning of the 2009/10 marketing year. Meanwhile, domestic grain purchasing prices dropped by 20%, m/m in December 2009.

Millennium Capital sees the main reason underlying this grain exports decrease to be related to a partial suspension of grain purchases by the domestic traders demanding that the Government of Ukraine pay back their past-due VAT (UAH 3.5bn). As a result, grain exports may drop 35%, m/m in December to UAH 1.5mnt, thereby significantly decreasing internal grain prices.