UKRAINE UNION URGES SUSPENSION OF PLANNED MINIMUM FOOD PRICES
Ukrainian government plans to set minimum export prices for some agricultural commodities would disrupt trading, cut grain exports and lead to losses for farmers, the UGA traders’ union said on Thursday, calling for the scheme to be suspended. Ukraine is seeking to increase its revenues and at the same time deal with the impact of protests in Europe last year by farmers who said cheap imports from Ukraine had crippled their business. In response the European Union, which had granted trade-free access to Ukraine to help it following Russia’s invasion in 2022, imposed limits on some imports.
Ukraine’s government has drawn up calculations to set minimum export prices for some agricultural commodities. Disruption due to the war with Russia has led to cash domestic purchases of some of Ukraine’s agricultural products and exports at artificially low prices to avoid taxes. The minimum prices would apply to shipments of wheat, corn, sunflower oil, soybeans, rapeseed and some other major agricultural commodities. UGA said the minimum export prices would put half of Ukraine’s exports at risk, could destroy the forward contract system and lead to uncertainty in the market regarding the fulfilment of exporters’ obligations and grain purchases.
(Link: Reuters)
CEREALS TT JUNE 20, 2024: WHEAT PRICES DECREASE DUE TO FORECASTED SEASON REDUCING CONCERNS ABOUT SUPPLY
Wheat prices fell on June 20 in Chicago as harvests in the US and elsewhere as well as higher output forecasts in major exporting countries eased supply concerns, and wheat contracts for September delivery slipped to their lowest level in two months. Corn and soybean futures also fell amid easing concerns about a heat wave hitting US corn and soybean crops. September CBOT soft red winter wheat prices fell 0.1% to 5.98-1/2 bushels, after falling to a low of $5.97. Soybean prices fell 0.1% to 11.73-1/4 bushels and corn prices traded 0.6% lower to 4.47-1/2 bushels.
(Link: Vina.Net)
