http://www.blackseagrain.net/ UkrAgroConsult-All information on agriculture and food industry of Ukraine, Russia, Kazakhstan http://www.blackseagrain.net/templates/pp_agro_fk/images/logo_typa.gif http://www.blackseagrain.net/ http://www.ukragroconsult.com/content/view/27789/60/ China's grain trade volume amounted to 414,000 tons in January, up 162.8% year on year, according to statistics released by the Ministry of Agriculture. The country imported 271,000 tons of grain during the month, up 234. World Thu, 11 Mar 2010, 17:36:29 +0300 China's grain trade volume amounted to 414,000 tons in January, up 162.8% year on year, according to statistics released by the Ministry of Agriculture. The country imported 271,000 tons of grain during the month, up 234.2% from a year ago, while a total of 142,000 tons of grain were sold to foreign countries and regions, up 86.8% year on year. The import and export value of grain stood at RMB 100 million and RMB 80 million in January, up 144.6% and 61.5% from the same month of last year, respectively. In January, China imported 62,000 tons of rice, 12,000 tons of corn, 86,000 tons of wheat and 95,000 tons of barley, and the export volumes of rice, corn, wheat and barley reached 64,000 tons, 42,000 tons, 12,000 tons and 1000 tons, respectively. The country did not export any corn or wheat in January 2009. China Knowledge http://www.ukragroconsult.com/content/view/27788/60/ The Agriculture Minister of Kazakhstan noted that freight rates over China’s territory will be able to impact competitiveness of Kazakh grain. Therefore it was proposed to subsidize grain shipments via China. News Thu, 11 Mar 2010, 17:33:24 +0300 The Agriculture Minister of Kazakhstan noted that freight rates over China’s territory will be able to impact competitiveness of Kazakh grain. Therefore it was proposed to subsidize grain shipments via China. Please remember that an agreement on transit of 3 MMT of Kazakh grain via China to South-East Asian countries had been achieved before. UkrAgroConsult<br/> http://www.ukragroconsult.com/content/view/27787/60/ The United States would like to see Russia as a partner in the World Trade Organisation (WTO) and has noted good progress in the settlement of this issue, United States Trade Representative Ron Kirk said in Washington on Tuesday. News Thu, 11 Mar 2010, 17:32:51 +0300 The United States would like to see Russia as a partner in the World Trade Organisation (WTO) and has noted good progress in the settlement of this issue, United States Trade Representative Ron Kirk said in Washington on Tuesday. Answering a question if any clarity has appeared in the process of Russia’s admission to the WTO Kirk said that active discussions are currently underway on the issue of Russia’s admission in an alliance with Kazakhstan and Belarus. He said the US has made very good progress in assisting the RF in overcoming the last difficulties on the way to the WTO and it continues the dialogue with Russia. Kirk stressed at the same time that the United States and American business are interested in Russia’s becoming part of the international trade community. A country wishing to accede to the WTO submits an application to the General Council, and has to describe all aspects of its trade and economic policies that have a bearing on WTO agreements. The application is submitted to the WTO in a memorandum which is examined by a working party open to all interested WTO Members. After all necessary background information has been acquired, the working party focuses on issues of discrepancy between the WTO rules and the applicant's international and domestic trade policies and laws. The working party determines the terms and conditions of entry into the WTO for the applicant nation, and may consider transitional periods to allow countries some leeway in complying with the WTO rules. The final phase of accession involves bilateral negotiations between the applicant nation and other working party members regarding the concessions and commitments on tariff levels and market access for goods and services. The new member's commitments are to apply equally to all WTO members under normal non-discrimination rules, even though they are negotiated bilaterally. When the bilateral talks conclude, the working party sends to the general council or ministerial conference an accession package, which includes a summary of all the working party meetings, the Protocol of Accession (a draft membership treaty), and lists (“schedules”) of the member-to-be’s commitments. Once the general council or ministerial conference approves of the terms of accession, the applicant's parliament must ratify the Protocol of Accession before it can become a member. The WTO has 153 members (almost all of the 123 nations participating in the Uruguay Round signed on at its foundation, and the rest had to get membership). The 27 states of the European Union are represented also as the European Communities. WTO members do not have to be full sovereign nation-members. Instead, they must be a customs territory with full autonomy in the conduct of their external commercial relations. Thus Hong Kong (as “Hong Kong, China” since 1997) became a GATT contracting party, and the Republic of China (ROC) (commonly known as Taiwan, whose sovereignty has been disputed by the People's Republic of China or PRC) acceded to the WTO in 2002 under the name of “Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu” (Chinese Taipei). A number of non-members (30) are observers at WTO proceedings and are currently negotiating their membership. As observers, Iran, Iraq and Russia are not yet members. With the exception of the Holy See, observers must start accession negotiations within five years of becoming observers. Some international intergovernmental organizations are also granted observer status to WTO bodies. 14 states and 2 territories so far have no official interaction with the WTO. Chairman of the international affairs committee of the Russian State Duma lower house of parliament Konstantin Kosachev said earlier that that Russia “has almost reached the final point” at talks on admission to the World Trade Organisation, however, they later “faded,” in essence. The United States is largely responsible for this, said the lawmaker calling on the local business and political circles to assist the completion of the process of Russia’s entry in the WTO. Kosachev also stated that Russia will be actively attracting the American experience for the modernisation of its own economy. Separately dwelling on the problems of the notorious Jackson-Vanick amendment, he said that at present “it plays no practical role.” Cancelling this amendment “is a problem of our American colleagues,” the RF parliamentarian stated. Russia has been in negotiations to join the WTO for over 16 years, and is the only major world economy not to have joined. Several former Soviet countries, and communist states such as China and Cuba, are already WTO members. Last December, Russian presidential aide Arkady Dvorkovich said Russia expected to complete negotiations on its accession to the WTO in 2010. In June 2009, the governments of Russia, Kazakhstan and Belarus notified the WTO of their intention to join the World Trade Organisation as a customs union. The three ex-Soviet republics suspended their bilateral negotiations on WTO entry to hold consultations on a common position on the customs union. In October 2009, Russia, Kazakhstan and Belarus announced they would resume talks on WTO accession separately, but on synchronized positions. Itar-Tass http://www.ukragroconsult.com/content/view/27786/60/ The increase in the share of domestic foodstuff in the home market up to 80 % will guarantee food safety of the country. Director of Department of Strategic Planning and Innovative Policy of the Agrarian and Industrial Complex of Kazakhstan, Nurken Sharbiev, said during the session of the board of the Ministry of Agriculture of Kazakhstan, the agency reports citing the press service of the Ministry of Agriculture of Kazakhstan. News Thu, 11 Mar 2010, 17:31:02 +0300 The increase in the share of domestic foodstuff in the home market up to 80 % will guarantee food safety of the country. Director of Department of Strategic Planning and Innovative Policy of the Agrarian and Industrial Complex of Kazakhstan, Nurken Sharbiev, said during the session of the board of the Ministry of Agriculture of Kazakhstan, the agency reports citing the press service of the Ministry of Agriculture of Kazakhstan. N. Sharbiev reminded that, in the Address to the people of Kazakhstan, the head of state stated the basic directions of development of agriculture, one of which - maintenance of food safety of the country. "The objective of the agrarian and industrial complex is the increase in the share of domestic foodstuff in the home market in 2014 up to 80 %," Director of Department of Strategic Planning informed. Kazakhstan Today http://www.ukragroconsult.com/content/view/27785/60/ The minister of agriculture of Republic of Moldova Valeriu Cosarciuc announced plans to help Romanian investors put their money into local investment projects, particularly in processing plants (for milk and meat processing). News Thu, 11 Mar 2010, 17:29:25 +0300 The minister of agriculture of Republic of Moldova Valeriu Cosarciuc announced plans to help Romanian investors put their money into local investment projects, particularly in processing plants (for milk and meat processing). This is part of a broader improvement in the cooperation between the countries after the communists lost the power in Chisinau. The legislation would be adjusted such as to allow foreigners buy farming land, he announced. Cosarciuc announced active measures including meetings with private investors in Romania in this regard. Currently the price of farming land in Moldova is around USD 1,000 per ha – which is below the price in any region of Romania. The farming land in Moldova is privately owned, but the plots are (just like in Romania) of small size: mostly below 10 ha per piece, while farms lease some 50ha. UkrAgroConsult<br/> http://www.ukragroconsult.com/content/view/27784/60/ A recent agreement signed by Russia, Kazakhstan and Belarus on the establishment of a customs union and increased tariffs may have a negative impact on the EU live pigs market, provide an incentive to increase exports of the EU pork to Russia instead of live animals. News Thu, 11 Mar 2010, 17:28:32 +0300 A recent agreement signed by Russia, Kazakhstan and Belarus on the establishment of a customs union and increased tariffs may have a negative impact on the EU live pigs market, provide an incentive to increase exports of the EU pork to Russia instead of live animals. The customs union was formally created on 1 January 2010, although the final settlement of specific issues is still underway. The three countries have established a common level of tariffs in trade with third countries, increasing the current live pigs import duties from 5 percent to 40 percent, except for clean bred breeding animals which rates will remain near zero. Currently Russia remains one of the primary destinations for the European live pigs, especially Polish. According to preliminary data of the Ministry of Finance in 2009, exports from the Eastern European country amounted to 274 thousand animals with a total weight of 30.8 thousand tonnes. It is almost two-thirds of total exports of Polish pigs abroad. Meatinternational.com http://www.ukragroconsult.com/content/view/27783/60/ President Georgi Purvanov reaffirms his stand that he will veto amendments to the GMO Act if the law fails to ensure safeguards to Bulgarian nature and human health, according to the President's position on the proposed amendments. News Thu, 11 Mar 2010, 17:27:42 +0300 President Georgi Purvanov reaffirms his stand that he will veto amendments to the GMO Act if the law fails to ensure safeguards to Bulgarian nature and human health, according to the President's position on the proposed amendments. The bill of amendments has been approved on second reading by the Parliamentary Environment and Water Committee. UkrAgroConsult<br/> http://www.ukragroconsult.com/content/view/27782/60/ The government plans to force better use of arable land by not paying its EUR 85 per ha top-up contribution to the single payment per ha disbursed from the EU. Currently, there are 1.2mn ha of arable land (of country’s 9mn ha of arable land and compared to 4-5mn ha cultivated) not cultivated, but still managed in an appropriate way for benefiting of single payments under the EU’s CAP. News Thu, 11 Mar 2010, 17:27:13 +0300 The government plans to force better use of arable land by not paying its EUR 85 per ha top-up contribution to the single payment per ha disbursed from the EU. Currently, there are 1.2mn ha of arable land (of country’s 9mn ha of arable land and compared to 4-5mn ha cultivated) not cultivated, but still managed in an appropriate way for benefiting of single payments under the EU’s CAP. The payment from the EU budget is rising this year from below to above 100 per ha, but it remains significantly below the payment for farmers in EU 15. In separate news, the government also considers setting up a special duty for the arable land owned but not cultivated. It is however premature to predict whether such move would be enforced or not. It would be highly unpopular and moreover it would not generate revenues to the budget – but rather unpaid debt to budget because those who own and not use the arable land are in many cases small subsistence farms. There is a part of such unused land owned by speculators indeed, which are the main target of such a law. UkrAgroConsult<br/> http://www.ukragroconsult.com/content/view/27781/60/ Sugar prices plunged back below 20 cents a pound in New York for the first time since August on reports that some Indian mills were reneging on purchases accelerated investors' exit from the sweetener. World Thu, 11 Mar 2010, 17:24:48 +0300 Sugar prices plunged back below 20 cents a pound in New York for the first time since August on reports that some Indian mills were reneging on purchases accelerated investors' exit from the sweetener. New York's May raw sugar contract hit 18.82 cents a pound in morning trade, taking to 38% the drop for a spot contract from a 29-year high hit in January. The latest decline, falling below a 20 cents level viewed as a key landmark by investors, followed reports that Indian sugar mills were cancelling purchase orders made during the sweetener's bull run. Not the first time India sugar firms have walked away from more than 100,000 tonnes of import deals, a figure which could rise to 600,000 tonnes if prices did not rebound, officials told Reuters. It was unclear whether the cancellations were washouts, in which buyers pay a penalty to evade purchase obligations, or simple defaults. "I do not know whether this is true or not, but it has certainly happened before," David Sadler, at Sucden Financial Sugar, told Agrimoney.com. "It has been a major reason why the market has gone down yet again." 'Falling knife' Another depressant on prices has been the movement of moving averages, with the 10-day and 20-day moving averages crossing below those for 100 and 200 days, an event viewed by many investors as a sell signal. "This is bringing out more liquidation," Mr Sadler said. However, another technical indicator, the relative strength index, which compares an average of positive and negative closes, was "well into oversold" territory and pointed to a rebound. "I think the market is cheap, and people should be looking to buy," said Mr Sadler, who has advising investments through spreads, and on later contract, to mitigate risks. Another trader told Agrimoney.com: "Who would catch a falling knife? There will be money to be made from this, but it may take guts, as well as nous." New York sugar closed down 3.1% at 19.69 cents a pound. London white sugar for May closed down 3.4% at $537.10 a tonne, after touching a six-month low of $518.70 a tonne earlier. Agrimoney http://www.ukragroconsult.com/content/view/27769/60/ In the reporting period NCSP Group's cargo turnover amounted to 14,054.5 thousand tons, which exceeds the cargo turnover of January-February 2009 by 2.3% (313.3 thousand tons). General cargo volumes in January-February 2010 increased by 15. News Thu, 11 Mar 2010, 15:22:32 +0300 In the reporting period NCSP Group's cargo turnover amounted to 14,054.5 thousand tons, which exceeds the cargo turnover of January-February 2009 by 2.3% (313.3 thousand tons). General cargo volumes in January-February 2010 increased by 15.1% (249.1 thousand tons) versus same period of 2009. Positive dynamics were shown by ferrous metals - volumes up by 20.8% (258.2 thousand tons), timber - up by 85.1% (140.7 thousand cubic meters), and perishable cargo - increased by 49.2% (14.7 thousand tons) over same period last year. Bulk cargo volumes in the reporting period exceeded the volumes of January-February last year by 3.9% (78.0 thousand tons). Grain volumes increased by 26.4% (304.8 thousand tons), raw sugar by 9.3% (15.7 thousand tons), and dry mineral fertilizers by 44.7% (104.1 thousand tons). Iron ore volumes in January-February 2010 reduced by 336.2 thousand tons versus same period last year on the back of ferrous metals handling growing by 258.2 thousand tons. Total volumes of Liquid cargo in the reporting period reduced by 1.2% (116.9 thousand tons) versus January-February 2009. At the same time UAN liquid fertilizer volumes rebounded by 80.4 thousand tons as compared to same period last year. Oil products volumes grew by 12.5% (276.1 thousand tons), while volumes of crude oil reduced by 6.2% (462.2 thousand tons). Container traffic in January-February this year increased by 29.0% (10.4 thousand TEU) versus that of January-February 2009. setcorp.info http://www.ukragroconsult.com/content/view/27768/60/ Moscow expects talks on the simultaneous accession of Russia, Belarus and Kazakhstan to the World Trade Organization (WTO) to be concluded in the near future, Foreign Minister Sergei Lavrov said on Wednesday. News Thu, 11 Mar 2010, 15:21:43 +0300 Moscow expects talks on the simultaneous accession of Russia, Belarus and Kazakhstan to the World Trade Organization (WTO) to be concluded in the near future, Foreign Minister Sergei Lavrov said on Wednesday. "The accession to the WTO remains our strategic goal. We are continuing to seek to join this organization on honest, open and parity conditions," Lavrov said. Russia has been in negotiations to enter the WTO for over 16 years, and is the only major economy outside of the global trade body. In June 2009, Russia, Kazakhstan and Belarus notified the WTO of their intention to join the world trade club as a customs union. Four months later, the three former Soviet republics announced they would resume talks on WTO accession separately, but working from synchronized positions. RIA Novosti http://www.ukragroconsult.com/content/view/27767/60/ In January-February 2010, Belarus’ GDP was up 3.5% over the same period in 2009, BelTA learnt from the National Statistics Committee. In line with the socio-economic forecast, GDP is projected to increase by 11-13% in 2010. News Thu, 11 Mar 2010, 15:20:51 +0300 In January-February 2010, Belarus’ GDP was up 3.5% over the same period in 2009, BelTA learnt from the National Statistics Committee. In line with the socio-economic forecast, GDP is projected to increase by 11-13% in 2010. In January-February, the production of industrial goods exceeded Br21 trillion, up 4.2% (the year’s forecast stands at 10-12%) over the same period a year before. The manufacture of consumer goods totaled Br4.949 trillion (up 7.7%), the production of foodstuffs Br2.695 trillion (up 9.9%), that of nonfoods Br1.971 trillion (up 5.9%). The 2010 forecast for consumer goods stands at 14-15%. The profitability of products, works and services in the industry was 3.8% (the 2010 forecast is 10%), the GDP energy intensity reduced by 5.7% (8-10%). BelTA http://www.ukragroconsult.com/content/view/27766/60/ Romania expects to reap about 9 MMT of maize this year, 13 percent more than in 2009, because of a larger sown area, the first estimate of this year's harvest showed. "We estimate average yields at 3.79 t/ha . News Thu, 11 Mar 2010, 15:19:54 +0300 Romania expects to reap about 9 MMT of maize this year, 13 percent more than in 2009, because of a larger sown area, the first estimate of this year's harvest showed. "We estimate average yields at 3.79 t/ha ... and an overall production of around 9 MMT," an agriculture ministry official handling crop statistics told UkrAgroConsult<br/> http://www.ukragroconsult.com/content/view/27765/60/ The Verkhovna Rada of Ukraine (parliament) has appointed a new government on Thursday. Thus, the parliament appointed Andriy Kliuyev as First Deputy Prime Minister; Borys Kolesnikov - Deputy Prime Minister; Volodymyr Semynozhenko - Deputy Prime Minister; Volodymyr Sivkovych - Deputy Prime Minister; Viktor Slauta - Deputy Prime Minister; Serhiy Tihipko - Deputy Prime Minister; Viktor Tikhonov - Deputy Prime Minister; Viktor Boiko - Environmental Protection Minister; Yuriy Boiko - Fuel and Energy Minister; Kostiantyn Yefimenko - Transport and Communications Minister; Dmytro Kolesnikov - Industrial Policy Minister; Mykhailo Kuliniaka - Culture and Tourism Minister; Oleksandr Lavrynovych - Justice Minister; Zynoviy Mytnyk - Health Minister; Anatoliy Mohiliov - Interior Minister; Vasyl Nadraha - Labor and Social Policy Minister; Oleksandr Popov - Housing and Public Utilities Minister; Mykhailo Prysiazhniuk - Agrarian Policy Minister; Ravil Safiullin - Minister for Families, Youth and Sports; Dmytro Tabachnyk - Education Minister; Anatoliy Tolstoukhov - Minister of the Cabinet of Ministers; Vasyl Tsushko - Economy Minister; Fedir Yaroshenko - Finance Minister; Volodymyr Yatsuba - Regional Development Minister; Yuriy Yashchenko - Coal Industry Minister; Nestor Shufrych - Emergencies Minister; Kostiantyn Hryshchenko - Foreign Minister; Mykhailo Yezhel - Defense Minister. Ukraine Thu, 11 Mar 2010, 15:15:38 +0300 The Verkhovna Rada of Ukraine (parliament) has appointed a new government on Thursday. Thus, the parliament appointed Andriy Kliuyev as First Deputy Prime Minister; Borys Kolesnikov - Deputy Prime Minister; Volodymyr Semynozhenko - Deputy Prime Minister; Volodymyr Sivkovych - Deputy Prime Minister; Viktor Slauta - Deputy Prime Minister; Serhiy Tihipko - Deputy Prime Minister; Viktor Tikhonov - Deputy Prime Minister; Viktor Boiko - Environmental Protection Minister; Yuriy Boiko - Fuel and Energy Minister; Kostiantyn Yefimenko - Transport and Communications Minister; Dmytro Kolesnikov - Industrial Policy Minister; Mykhailo Kuliniaka - Culture and Tourism Minister; Oleksandr Lavrynovych - Justice Minister; Zynoviy Mytnyk - Health Minister; Anatoliy Mohiliov - Interior Minister; Vasyl Nadraha - Labor and Social Policy Minister; Oleksandr Popov - Housing and Public Utilities Minister; Mykhailo Prysiazhniuk - Agrarian Policy Minister; Ravil Safiullin - Minister for Families, Youth and Sports; Dmytro Tabachnyk - Education Minister; Anatoliy Tolstoukhov - Minister of the Cabinet of Ministers; Vasyl Tsushko - Economy Minister; Fedir Yaroshenko - Finance Minister; Volodymyr Yatsuba - Regional Development Minister; Yuriy Yashchenko - Coal Industry Minister; Nestor Shufrych - Emergencies Minister; Kostiantyn Hryshchenko - Foreign Minister; Mykhailo Yezhel - Defense Minister. The Verkhovna Rada appointed Mykola Azarov the Prime Minister of Ukraine. UKRINFORM http://www.ukragroconsult.com/content/view/27764/60/ The Verkhovna Rada of Ukraine appointed Mykola Azarov Prime Minister of Ukraine. According to an UNIAN correspondent, 242 out of 343 lawmakers registered in the session hall voted for this decision. Ukraine Thu, 11 Mar 2010, 15:14:21 +0300 The Verkhovna Rada of Ukraine appointed Mykola Azarov Prime Minister of Ukraine. According to an UNIAN correspondent, 242 out of 343 lawmakers registered in the session hall voted for this decision. President of Ukraine Victor Yanukovych congratulated M. Azarov and presented a bunch of flowers to him. UNIAN http://www.ukragroconsult.com/content/view/27763/60/ Viterra Inc. has expanded its grain and agri-business empire, announcing a merger with the third-largest dry pasta producer in North America, Dakota Growers, on the day the Saskatchewan-based company posted positive quarterly results. World Thu, 11 Mar 2010, 15:12:11 +0300 Viterra Inc. has expanded its grain and agri-business empire, announcing a merger with the third-largest dry pasta producer in North America, Dakota Growers, on the day the Saskatchewan-based company posted positive quarterly results. Viterra, Canada’s largest grain handler and former Saskatchewan Wheat Pool, said Wednesday it would be offering $18.23 US per outstanding share for the North Dakota firm. The merger is an ideal fit with Viterra’s North American growth strategy and particularly the U.S. pasta consumption market, company executives said, giving the U.S. firm an enterprise value of $240 million US. “This is right in our wheelhouse,” chief executive Mayo Schmidt said in a conference call from Calgary. “We’re one of the largest collectors of durum on the continent . . . so it lines very carefully up with our intention to take (the business) from seed technology all the way through to processing.” The proposed Dakota acquisition, expected to close in the second quarter, comes on the heels of Viterra’s $1.4-billion buy of Australia’s ABB Grain Ltd. last September. The addition of the Australian agri-business pushed Viterra into the black for the first quarter, ended Jan. 31, adding 60 per cent to the bottom line and reflecting a return to normal conditions for the industry, Schmidt said. The buy also balances out income as the Australian results are strong during the first fiscal quarter, when Viterra’s North American results are strongest during the third quarter, he noted. The company posted a $10.7-million profit, or three cents per share, during the quarter, contrasting a $32.95-million loss clocked a year prior when fertilizer sales and grain prices slid. Revenue for the quarter rose 29 per cent to $1.8 billion. Analysts, on average, had expected Viterra to report earnings of six cents a share on revenue of $1.9 billion, according to Thomson Reuters. Viterra voted against a special resolution raised during the annual meeting to issue a report by September on the firms’ actions to combat climate change. The timing was not right to meet Northwest Ethical Investments’ resolution, Schmidt said. “We agree in principal with what needs to be done, but we’re balancing a global organization and only bought the Australian company in September,” he said. “Their expectations are different than ours in terms of when we can roll it out, but it will be done this fiscal year.” First quarter sales and operating revenue for Viterra’s agri-products business unit rose to $215.3 million for the quarter from $189.9 million a year prior. The increase was partially due to a 15 per cent jump in fertilizer sales as prices softened and farmers replenished nutrients for spring planting. Sales in processing jumped to $311.5 million for the quarter from $65.8 million a year prior. The sharp increase was attributed to the Australian acquisition and the addition of a canola crush plant last June. The company’s grain handling and marketing business unit reported $109.7 million in earnings before interest, taxes, depreciation and amortization, with Australia contributing $64 million to the pot. Viterra shares gained 23 cents Wednesday to close at $9.88 per share on the Toronto Stock Exchange. Timescolonist.com http://www.ukragroconsult.com/content/view/27762/60/ The European Business Association, which was created upon the initiative of the European Commission for protection of European business interests in Ukraine, is calling on the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development, and the International Finance Corporation to pressure the Ukrainian authorities to solve the problem of the government’s failure to refund VAT, said Alexey Kredisov, Vice President of the European Business Association and managing partner of Ernst Young in Ukraine. Ukraine Thu, 11 Mar 2010, 14:54:13 +0300 The European Business Association, which was created upon the initiative of the European Commission for protection of European business interests in Ukraine, is calling on the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development, and the International Finance Corporation to pressure the Ukrainian authorities to solve the problem of the government’s failure to refund VAT, said Alexey Kredisov, Vice President of the European Business Association and managing partner of Ernst Young in Ukraine. “We speak with the international financial organizations providing financial support to the government – IMF, WB, EBRD, IFC – and with embassies (of different countries in Ukraine) and the EU to make Ukraine fulfill these demands (for normalization of VAT refunds)," he said. In the opinion of Mr. Kredisov, it would be expedient if the International Monetary Fund made this a demand to Ukraine (that it normalize VAT refunds) as a condition for receiving next stand-by loan tranche. According to EBA Executive Director Anna Derevyanko, the outstanding VAT refunds total more than UAH 20 Bl, with roughly 10% of this amount being owed to the association member companies. The EBA believes the problem of outstanding VAT refunds could be solved in several ways: through issuing state VAT bonds (to solve the problem of the already accumulated tax refund debt of the government), through issuing tax anticipation bills by VAT payers (to prevent the formation of new refund debts), and through introducing mutual settlement of accounts between the government and VAT payers (write-off of the government’s VAT refund debt in lieu of income tax). The EBA also hopes for a revival of the dialogue with the Ukrainian authorities on solving the problem of outstanding VAT refunds. As reported before, Serhiy Buryak, Head of the State Tax Association, stated in the middle of February that he estimated the total amount of outstanding VAT refunds at over UAH 20 Bl. UkrAgroConsult<br/> http://www.ukragroconsult.com/content/view/27761/60/ Verkhovna Rada Chairman Volodymyr Lytvyn on March 11 declared the creation of the ruling coalition of the factions of the Regions Party, the Communist Party, the Bloc of Lytvyn and MPs who expressed a desire to join the decision of the factions. Ukraine Thu, 11 Mar 2010, 14:51:23 +0300 Verkhovna Rada Chairman Volodymyr Lytvyn on March 11 declared the creation of the ruling coalition of the factions of the Regions Party, the Communist Party, the Bloc of Lytvyn and MPs who expressed a desire to join the decision of the factions. The coalition, called "Stability and Reform," includes 235 MPs, with a total of 450 seats in parliament. The law, by which the Verkhovna Rada, Ukraine's parliament, stipulated in its rules of procedure that the coalition is a union of deputy factions and MPs that includes a majority of lawmakers from the constitutional staff of the parliament, came into force on March 11. According to the law, the coalition can be formed within a month from the day of the opening of the first meeting of the newly elected parliament, or within a month from the day of the breakup of the previous coalition. A list of MPs who formed the coalition is added to a coalition agreement, with the signatures of MPs. Such a list is an inseparable part of the coalition agreement. ForUm http://www.ukragroconsult.com/content/view/27758/60/ The perspective of keeping the 2010 inflation at the level of 10% has become vague, Valeriy Lytvytskyi, chief adviser to the central bank governor, said commenting price rises in February (+1.9%). "Inflation in February was higher than predicted by IMF representatives, many independent experts and even some of the NBU. Ukraine Thu, 11 Mar 2010, 12:04:51 +0300 The perspective of keeping the 2010 inflation at the level of 10% has become vague, Valeriy Lytvytskyi, chief adviser to the central bank governor, said commenting price rises in February (+1.9%). "Inflation in February was higher than predicted by IMF representatives, many independent experts and even some of the NBU. Although in the first two months of 2010 Ukrainian inflation was lower than in January - February 2009, the perspective of keeping the price rise in 2010 within the limits of 10% has become value. I am confused that inflation has been accelerating for the second month in a row. I do not believe that now it is high time for the NBU to revise the key rates (downwards), but it is necessary to hold revision of all available instruments for curbing inflation," the expert noted. Lytvytskyi emphasized that the February inflation is a "signal for revision of macroeconomic risks." UKRINFORM http://www.ukragroconsult.com/content/view/27757/60/ The United States Department of Agriculture forecasts that exports of US beef to Korea will increase by thirty-three percent this year. Yesterday, financial news agency Bloomberg reported that the US government expects a hike in Korea's imports of American beef from an estimated 83-thousand tonnes last year to 110-thousand tonnes in 2010. World Thu, 11 Mar 2010, 11:58:55 +0300 The United States Department of Agriculture forecasts that exports of US beef to Korea will increase by thirty-three percent this year. Yesterday, financial news agency Bloomberg reported that the US government expects a hike in Korea's imports of American beef from an estimated 83-thousand tonnes last year to 110-thousand tonnes in 2010. The positive prediction follows more active marketing by US beef exporters in South Korea. Imports of US beef from Korea were suspended in 2003 after a case of mad cow disease was detected in the state of Washington, however were resumed in 2008 upon President Lee Myung-bak's visit to the US. meatinternational.com http://www.ukragroconsult.com/content/view/27756/60/ The U.S. Wheat Associates (USW) expressed concern over the implications for U.S. wheat after Brazil won a World Trade Organization (WTO) dispute settlement against the U.S. involving the use of illegal subsidies to support the domestic cotton industry. World Thu, 11 Mar 2010, 11:36:05 +0300 The U.S. Wheat Associates (USW) expressed concern over the implications for U.S. wheat after Brazil won a World Trade Organization (WTO) dispute settlement against the U.S. involving the use of illegal subsidies to support the domestic cotton industry. A WTO arbitration panel awarded Brazil up to $830 million in potential retaliatory measures against the U.S. This includes punitive tariffs on U.S. goods totaling $560 million and an additional $270 million in sanctions through restrictions on intellectual property rights for pharmaceutical products. Import duties on wheat will increase to 30% from 10% in addition to the 25% Merchant Marine Tax on wheat shipped to Brazil's northeast ports. USW said the WTO decision to allow Brazil to penalize the use of the GSM-102 program for U.S. wheat exports, where the U.S. does not compete with Brazil for wheat commodity, is a major concern to U.S. wheat producers. The USW said many wheat customers still find value in the program. In fiscal year 2008-09, $693.5 million in GSM-102 export credit guarantees were used for wheat exports worldwide. A decision by Brazil to penalize the use of the GSM program could impact the export of 3.5 million tonnes of wheat, to buyers that rely on this program for credit, according to the USW. Brazil is a major wheat importer and is routinely one of the top three wheat importers in the world. The latest five-year average for total imports is 6.4 million tonnes. The USW said that the U.S. wheat market share to Brazil has ranged from almost zero to about 12% over the past 10 years. USW said increased duties on U.S. wheat imports would shut the U.S. out of the Brazilian wheat market. The U.S. is already at a tariff disadvantage to Argentina for this market. USW said it would continue to push the U.S. and Brazilian governments to reach a negotiated settlement before the higher tariff levels are effective. World Grain http://www.ukragroconsult.com/content/view/27755/60/ The world's corn crop is to top 800m tonnes for the first time, thanks to raised hopes for Argentine and South African production, US officials have said in a report trimming price hopes for American farmers. World Thu, 11 Mar 2010, 11:32:51 +0300 The world's corn crop is to top 800m tonnes for the first time, thanks to raised hopes for Argentine and South African production, US officials have said in a report trimming price hopes for American farmers. The US Department of Agriculture, in a much-watched report on global crop supplies, lifted by 5.9m tonnes to 803.7m tonnes its forecast for the world's 2009-10 corn harvest. The revision reflected an increase of 3.8m tonnes - or 22% - to the harvest in Argentina, the world's second-biggest exporter of the grain, with South African production pegged 2.0m tonnes higher. "Harvested area and yield are raised for both countries as abundant soil moisture and lack of stressful heat during the past month supported crops through critical stages of development," the USDA said. 'Export competition' The raises dwarfed a downward revision of some 500,000 tonnes to America's corn production following a resurvey of farmers, to take account of a harvest heavily delayed by a wet autumn. The revision, equivalent to 20m bushels, was significantly lower than the 70m-bushel change that analysts had expected. Furthermore, its impact in shrinking year-end stocks was more than offset by weaker hopes for exports, "as larger foreign supplies increase competition". American corn inventories will end 2009-10 at 27.2m tonnes (1.799bn bushels), the USDA said, increasing its estimate by 2.0m tonnes (80m bushels). Growers would feel the impact of the slacker market in their pockets, with US farmgate prices set to average $3.45-3.75 per bushel over the season, down $0.20 on previous hopes. Market reaction The report was viewed by analysts as unsupportive for prices, with Allendale saying it would "cap any rallies until planting" of America's spring crop. In Chicago, corn cosed down 0.9% at $3.55 ½ a bushel for March delivery, and by the same percentage to $3.65 ½ a bushel for May. Agrimoney http://www.ukragroconsult.com/content/view/27754/60/ The U.S. soybean crop is smaller than estimated in January, though still a record, the government said, after surveying farmers in four southern states where rain delayed the harvest late last year. About 3. World Thu, 11 Mar 2010, 11:32:12 +0300 The U.S. soybean crop is smaller than estimated in January, though still a record, the government said, after surveying farmers in four southern states where rain delayed the harvest late last year. About 3.359 billion bushels were collected, down from 3.361 billion estimated in January, the U.S. Department of Agriculture said today after reassessing harvests in Georgia, North Carolina, South Carolina and Virginia. Analysts surveyed by Bloomberg News expected 3.349 billion, on average. “These are minor adjustments and help to tighten supplies a bit further,” Brian Grete, the senior market analyst for the Professional Farmers of America newsletter in Cedar Falls, Iowa, said before the report. “The weather for planting crops in the U.S. will now take center stage” for determining price direction, Grete said. A smaller crop may increase feed costs for livestock producers such as Tyson Foods Inc. and Smithfield Foods Inc., while benefiting oilseed processors including Archer Daniels Midland Co. and Bunge Ltd. Production was bigger than the 2.967 billion bushels collected in the previous year and more than the prior record harvest of 3.197 billion in 2006. Futures Fall Soybean futures for May delivery yesterday slid 0.5 cent to $9.475 a bushel on the Chicago Board of Trade, after reaching $9.35, the lowest price for a most-active contract since Feb. 10. The commodity has fallen 9.6 percent this year on U.S. forecasts for record production in Brazil and Argentina. The average acre will yield 44 bushels of soybeans, the USDA said, unchanged from January. The yield was 39.7 bushels per acre in the previous harvest. About 76.4 million acres (30.9 million hectares) were harvested, the USDA said, unchanged from 76.4 million estimated in January and more than the previous year’s 74.7 million. Reserve supplies before the next harvest were projected at 190 million bushels, down from the previous forecast for 210 million, the USDA said. Analysts expected 193 million bushels, on average. The surplus on Aug. 31 was 138 million bushels, the second-smallest since 1977. The department also revised its estimate for inventories of the oilseed on Dec. 1. to 2.33 billion bushels, down from 2.34 billion estimated in January. Overseas demand is projected at 1.42 billion bushels for the marketing year that began Sept. 1, up from last month’s forecast for 1.4 billion and from 1.283 billion in the previous year. U.S. processors will convert 1.73 billion bushels of soybeans into animal feed and vegetable oil, up from last month’s estimate of 1.72 billion and up from 1.662 billion in the previous year, the department said. Cash prices will average $9.45 a bushel for the marketing year, unchanged from last month’s forecast and down from $9.97 in the previous year, the USDA said. Prices averaged a record $10.10 in the 2007-2008 season. World production in the crop year that began Oct. 1 will be a record 255.9 million metric tons, up from 255 million tons forecast a month ago and up from 210.9 million produced in the previous year, according to the report. The crop forecast for Brazil, the second-largest grower, was raised to 67 million tons, from 66 million last month. Argentina, the third-biggest producer, will produce 53 million tons, unchanged from February, the USDA said. World inventories of the oilseed on Sept. 30 will be 60.7 million tons, up from 59.7 million forecast in February and up from 42 million a year earlier, the USDA said. “The world supply situation is much more comfortable that it was last year,” Grete said. Bloomberg http://www.ukragroconsult.com/content/view/27753/60/ Japan, the biggest buyer of U.S. wheat, may stockpile the grain or seek alternative supplies before the U.S. closes its largest export gateway later this year for a three-month revamp, potentially delaying shipments. World Thu, 11 Mar 2010, 11:28:05 +0300 Japan, the biggest buyer of U.S. wheat, may stockpile the grain or seek alternative supplies before the U.S. closes its largest export gateway later this year for a three-month revamp, potentially delaying shipments. Downstream lock gates on the Columbia River and the Snake River in the U.S. Pacific Northwest will be repaired from mid- December through mid-March, closing the waterways to barge traffic, said Diana Fredlund, a spokeswoman for the Army Corps of Engineers Northwestern Division in Portland, Oregon. The work will affect shipments of Western White wheat, said industry groups in Japan and South Korea. The potential supply disruption from the world’s largest exporter may affect wheat prices, which have fallen 11 percent this year partly because of rising global inventories. The Columbia River is the biggest wheat and barley export gateway in the U.S. and the third-largest grain gateway in the world, according to the Web site of Pacific Northwest Waterways Association. “Buyers are concerned that supplies of white wheat may be disrupted,” said Park Jeong Seop, deputy general manager at the Korea Flour Mills Industrial Association. “They are trying to work with suppliers and related parties to find ways to minimize any possible disruption.” Japan’s flour milling industry may look into options including transporting wheat by rail, expanding stockpiles before the revamp starts, or substituting Australian wheat for the U.S. supplies, according to Masaaki Kadota, executive director at Japan’s Flour Millers Association. Gate Repairs The repairs will be made to lock gates at the Dalles and the John Day dams on the Columbia River and the Lower Monumental dam on the Snake River, Fredlund said. This may boost demand for rail, which could slow overall shipments and result in congestion, Park said. Lock gate networks on the two rivers are normally closed for two weeks every year for maintenance and repairs, the U.S. Army Corps of Engineers said. “What we’re hearing is farmers plan to ship as much of their product as possible via barge, then hold their product during the closure,” said Kristin Meira, a spokeswoman for the Pacific Northwest Waterways in Portland, Oregon. U.S. farmers “may take advantage of rail for a small amount of product,” she said. Pacific Northwest Waterways, established in 1934, led the way to securing Congressional authorization and funding to build locks and dams on the Columbia and Snake Rivers, its site shows. “We hear there will be a flurry of activity when the locks reopen in mid-March. Not much grain will be directed to different modes of transportation,” Meira said. No Proposals The Japanese government has no concrete proposals at the moment, said Shirara Shiokawa, director at the grain trade division of the Ministry of Agriculture, Forestry and Fisheries, which controls overseas purchases and domestic sales of wheat, barley and rice. “We expect the government will discuss with U.S. shippers to come up with a solution,” the Millers Association’s Kadota said by phone. Japan was the biggest buyer of U.S. wheat last year, importing 3 million metric tons, and South Korea was the fifth- biggest with 1.1 million tons, according to U.S. Department of Agriculture data. Wheat for May delivery lost 0.3 percent to $4.82 a bushel in Chicago at 4:51 p.m. Seoul time. The most-active contract dropped 11 percent last year. Western White Wheat Western White wheat, used to make snacks and cakes, made up about a quarter, or 710,000 tons, of Japan’s imports of U.S. milling wheat in the year ended March 31, 2009, data from the agriculture ministry show. In the same year, Japan bought 727,000 tons of Australia’s Standard White wheat, which could be a substitute for U.S. grain. Australia is the world’s fourth-biggest wheat exporter. White wheat accounts for half of Korea’s milling wheat imports from the U.S., or 500,000 tons, the Korean group said. “Firstly, we will have to wait until around July to see what alternative measures suppliers come up with,” said Park Yang Jin, deputy senior manager at the business department of Daehan Flour Mills Co., Korea’s largest milling wheat importer. “Both sides need to seek solutions together.” Park ruled out boosting purchases before the river shutdown because of higher transport and financial costs and lack of storage capacity at Korean ports. Mills can’t switch to buying Australian wheat because of different specifications, he said. Korean millers need more time to discuss countermeasures, Park said. Korean mills buy wheat through public tenders. Bloomberg http://www.ukragroconsult.com/content/view/27752/60/ Brazilian exports of raw beef grew 26 per cent in the first two months of 2010, compared to the same period last year, reaching US$ 665.531 million in business. According to Brazil-Arab News Agency the figures were presented earlier this week by Otavio Cancado, Executive Director of the Brazilian Beef Industry and Exporters Association (ABIEC). World Thu, 11 Mar 2010, 11:25:54 +0300 Brazilian exports of raw beef grew 26 per cent in the first two months of 2010, compared to the same period last year, reaching US$ 665.531 million in business. According to Brazil-Arab News Agency the figures were presented earlier this week by Otavio Cancado, Executive Director of the Brazilian Beef Industry and Exporters Association (ABIEC). Iran was the country that presented the greatest expansion in revenues (216 per cent - US$ 93.094 million) and in quantity (195 per cent - 35,323 tonnes) in purchases of raw beef from Brazil, as against 2009. However, Russia remains the main importer of beef from the country, with purchases of 61,801 tonnes of the product and revenues of US$ 126.447 million. Egypt, the main Arab buyer of raw beef, was responsible for five per cnt of sales of the product in the period, with expansion of 22 per cent in imported volume and 72 per cent in revenues generated. Between January and February this year, the country in North Africa bought 11,636 tonnes of meat, generating US$ 24.272 million. “Egypt has always been an important trade partner for Brazilian beef. There was a reduction due to the entry of Iran [as a buyer], but it is still one of the main trade partners in the area,” said Mr Can ado. Algeria, which is in the second place among the Arab buyers, was responsible for four per cent of Brazilian sales, reduction of 12 per cent in the volume of exports (the country purchased 10,927 tonnes of beef). However, revenues grew three per cent (reaching US$ 22.252 million). “You reduce the volume, but there is expansion in prices. Thus, the average growth per tonne exported to Algeria was 17 per cent, which is very positive, as revenues are still rising,” analysed Mr Can ado. Saudi Arabia purchased three per cent of the Brazilian beef exported in the first months of the year, totalling 6,969 tonnes of beef, expansion of 28 per cent over 2009, generating US$ 16.551 million in revenues, growth of 53 per cent in comparison with last year, reports Brazil-Arab News Agency. Sales of industrialized beef presented reduction of 10 per cent in volume and 13 per cent in revenues. According to Mr Can ado, this is a reflex of the global financial crisis. “The crisis expanded the sale of industrialised beef in 2009. With the return to trade, the purchase of raw beef, a higher quality product, has risen,” he explained. TheCattleSite http://www.ukragroconsult.com/content/view/27751/60/ Egypt came to the aid of Paris wheat after a cocktail of a stronger euro, weak French grain data, and a cloud over Algerian imports threatened to send prices lower once again. The price of Paris's March lot dipped in early deals to E115. World Thu, 11 Mar 2010, 11:24:32 +0300 Egypt came to the aid of Paris wheat after a cocktail of a stronger euro, weak French grain data, and a cloud over Algerian imports threatened to send prices lower once again. The price of Paris's March lot dipped in early deals to E115.25 a tonne, matching Monday's three-year low, as FranceAgriMer, the French farm office, raised its estimate for the country's wheat stocks by 71,000 tonnes to 3.99m tonnes. The increase for inventories as of the end of 2009-10 in Europe's biggest wheat producer reflected a decline in hopes for domestic feed demand, and of exports within the region. And Remi Haquin, the president of FranceAgriMer's grains committee, signalled weak prospects for prices to come, with the outlook for this year's harvest appearing "good to excellent". "In terms of farmers' revenues, the situation looks like being difficult again in 2010," he said. Durum trade halted Separately, Algeria, France's main wheat export market, said its 2010 harvest was looking in even better shape than last year's, which enabled a 12% drop to 5.69m tonnes in imports. "Now we are having March rains, which are very interesting, very beneficial," Amar Assabah, a senior Algerian farm ministry official, told state radio as he announced a temporary halt to imports of durum wheat, the type used in making pasta. Furthermore, the euro rebounded after George Papandreou, the prime minister of debt-troubled Greece, said that the European Union would be prepared to intervene if the country's borrowing costs are pushed higher by speculators. 'Cheered things up' However, March wheat closed up E0.50 at E116.25 a tonne In Paris after France split with Russia victory in the latest tender from Egypt, the world's biggest wheat importer. "That cheered things up a bit, but only a bit," a London trader told Agrimoney.com. Jonathan Lane, trading manager at UK grain merchant Gleadell, pointed to the bid of $164.55 a tonne, from merchant Alex Grain, with which France won half of Egypt's 120,000-tonne order. "That's a low price," Mr Lane said. Egypt three months ago paid $193.70 a tonne for French wheat. Danish threat Even then, Paris wheat might have further to fall, with intervention offering at best E104.53 a tonne, silos to empty before what looked like proving a bumper harvest, and prices of supplies from other countries yet cheaper. "French wheat it not competitive against Black Sea business," Mr Lane said. "And it is about £16.50 a tonne more expensive than London wheat." Furthermore, Denmark is believed to be selling increasingly aggressively on wheat markets, with some 500,000 tonnes to sell before the next harvest, he added. Agrimoney http://www.ukragroconsult.com/content/view/27750/60/ Import of Pakistani rice to Malaysia is expected to increase four-fold this year, said Wijiuallah Kundi, Commercial Counselor for Pakistan High Commission in Kuala Lumpur. According to a Malaysian website he said, Malaysian Padiberas Nasional Bhd (Bernas) and its group of companies have quadrupled their import of Pakistani rice. World Thu, 11 Mar 2010, 11:23:39 +0300 Import of Pakistani rice to Malaysia is expected to increase four-fold this year, said Wijiuallah Kundi, Commercial Counselor for Pakistan High Commission in Kuala Lumpur. According to a Malaysian website he said, Malaysian Padiberas Nasional Bhd (Bernas) and its group of companies have quadrupled their import of Pakistani rice. He said the group of companies involved in the procurement and processing of paddy, including importing, warehousing, distribution and marketing, aimed at diversifying Bernas’s rice import base and to reduce its dependence on traditional supplier Thailand and Vietnam. Wijiuallah said that rice from Thailand and Vietnam made up 45.9 percent and 34.5 percent respectively of Malaysia’s total rice imports. “Currently, Pakistan is the third largest exporter of rice to Malaysia, but it makes up only 4.1 percent of the total rice import which now is projected to increase four-fold in 2010,” he said. app Daily Times http://www.ukragroconsult.com/content/view/27749/60/ Following the excessively cold January, when the average monthly air temperature was 2-50 below its normal values, February’s weather was unusually warm. The average temperature during that month exceeded the norm by 1. Ukraine Thu, 11 Mar 2010, 11:21:42 +0300 Following the excessively cold January, when the average monthly air temperature was 2-50 below its normal values, February’s weather was unusually warm. The average temperature during that month exceeded the norm by 1.0-2.50. The alteration between warmth and cold-snaps led to freezing of melt water on the soil surface and the appearance of ice crust in crops. The crust covered 660 Th ha of winter crops in late February. Ice crusts cover most of Kharkiv region (57% of the crop acreage), Poltava (50%), Cherkasy (12%), Ivano-Frankivsk (30%), and Sumy (11%). The average ice crust is 9-20 mm thick, locally 30-75 mm, and covers 10 to 90% of the field area. Daylight warming leads to partial crust melt but during below-zero nighttime temperatures allow reformation of the crust. In some districts of Kharkiv, Poltava, Luhansk, Sumy regions, the ice crust has been in place for over 40-50 days. This may result in heavy damage to part of winter crops and even complete loss. In 2003, ice crust killed over 5.5 Ml ha of winter crops (65%) in Ukraine. This year’s extent of the ice crust is far smaller (7-8%), but loss of winter crops is very probable in regions where this crust appeared. UkrAgroConsult http://www.ukragroconsult.com/content/view/27748/60/ Kazakhstan plans to sell 600,000 tonnes of grain to South Korea , deputy PM Umirzak Shukeyev has stated. He explained that "a contract is being drafted with a South Korean company for grain to be shipped via China ". News Thu, 11 Mar 2010, 11:20:50 +0300 Kazakhstan plans to sell 600,000 tonnes of grain to South Korea , deputy PM Umirzak Shukeyev has stated. He explained that "a contract is being drafted with a South Korean company for grain to be shipped via China ". To remind you, Kazakhstan harvested 21mn tonnes of grain last year, up from 16.5mn tonnes in 2008. The country plans to double grain exports to 10mn tonnes in 2009-2010 marketing year. Significantly, plan to sell grain to South Korea is a part of wider strategy to diversify exports market for Kazakh grain. It is also worth noting that China will serve for the first time as a transit country for exports of Kazakh grain. Kazakhstan Today http://www.ukragroconsult.com/content/view/27747/60/ The U.S. Department of Agriculture USDA projected higher 2010 U.S. carryover stocks of wheat and corn but lower stocks of soybeans compared with February projections in its March 10 World Agricultural Supply and Demand Estimates report. World Thu, 11 Mar 2010, 11:20:02 +0300 The U.S. Department of Agriculture USDA projected higher 2010 U.S. carryover stocks of wheat and corn but lower stocks of soybeans compared with February projections in its March 10 World Agricultural Supply and Demand Estimates report. World 2010 carryover projections were raised from February for wheat, corn and soybeans. The projected 2010 USDA carryover numbers for wheat and corn were above the average pre-report trade expectations, but the soybean number was below the average trade estimate. Projected carryover of U.S. wheat on June 1, 2010, was 1 billion bushels, up 20 million from the February projection of 981 million bushels and up 344 million, or 52%, from 657 million bushels in 2009. The increase in carryover was the result of a 20-million-bushel decrease in projected food use of wheat in 2009-10 based on mill grind data from the U.S. Bureau of the Census, the USDA said. Food use of wheat was projected at 920 million bushels, down 20 million from 940 million bushels projected in February and 7 million below 2008-09 use of 927 million bushels. "High flour extraction rates for a second straight year are reducing the amount of grain needed to produce flour," the USDA said. "At the same time, declining per capita consumption is reducing demand for flour and wheat." Other use projections were unchanged from February including seed use at 72 million bushels in 2009-10, feed and residual use at 170 million bushels and exports at 825 million bushels, which were down 190 million, or 19%, from 1 billion bushels last year. Total domestic use was projected at 1.2 billion bushels, down 20 million from February and down 98 million, or 8%, from 1.3 billion bushels in 2008-09, and total wheat use at nearly 2 billion bushels, down 20 million from February and down 288 million, or 13%, from 2.3 billion bushels in 2008-09. Carryover projections were adjusted from February for all wheat classes except durum, which was at 45 million bushels. Projected 2010 carryover of hard winter wheat was 420 million bushels, down 1 million from February, hard spring 277 million bushels, up 5 million, soft red 207 million bushels, up 4 million, and white wheat 52 million bushels, up 12 million. The average farm price of all wheat was projected at $4.80-$5 a bushel in 2009-10 compared with $4.75-4.95 in February, $6.78 in 2008-09 and $6.48 in 2007-08. Global 2009-10 wheat production was projected at 678.01 million tonnes, up 570,000 tonnes from February but down 4.64 million tonnes from record large outturn of 682.65 million tonnes in 2008-09. Production in Argentina was forecast at 9.6 million tonnes, up 600,000 tonnes from February and from a year earlier. World wheat ending stocks were projected at 196.77 million tonnes in 2009-10, up 910,000 tonnes from 195.86 million tonnes in February and up 31.2 million tonnes, or 19%, from 165.57 million tonnes in 2008-09. Projected U.S. corn carryover on Sept. 1, 2010, was 1.8 billion bushels, up 80 million, or 5%, from 1.7 billion bushels projected in February and 8% above 1.7 billion bushels in 2009. Carryover was raised as a result of a projected 100-million-bushels decrease in 2009-10 corn exports only partially offset by a 20-million-bushels reduction in 2009 corn production. U.S. 2009 corn production was estimated at 13.1 billion bushels, down 20 million from February but 9% above 2008 production of 12.1 billion bushels and still the largest on record. Total 2009-10 corn supply also was lowered by 20 million bushels from February, to 14.8 billion bushels. Domestic corn use in 2009-10 was unchanged from February at 11.1 billion bushels, including 5.6 billion bushels for feed and residual, 1.3 billion bushels for food and 4.3 billion bushels for ethanol. Corn exports in 2009-10 were projected at 1.9 billion bushels, down 100 million from February due to increasing competition from larger world supplies, the USDA said. Total corn use was projected at 13 billion bushels, down 100 million from February but up 959 million, or 8%, from 12.1 billion bushels the previous year. The average corn price was projected to fall in a range of $3.45-$3.75 a bushel compared $3.45-$3.95 in February, $4.06 in 2008-09 and $4.20 in 2007-08. World corn production in 2009-10 was projected at 803.69 million tonnes, up 5.86 million tonnes from 797.83 million tonnes in February and up 9.17 million tonnes from 794.52 million tonnes in 2008-09. Corn production in 2009-10 was raised from February by 3.8 million tonnes, to 21 million tonnes, in Argentina, and by 2 million tonnes, to 13.5 million tonnes, in South Africa, the USDA said. Global corn ending stocks were projected at 140.15 million tonnes for 2009-10, up 6.11 million tonnes, or 5%, from 134.04 million tonnes in February but down 6.25 million tonnes, or 4%, from 146.4 million tonnes in 2008-09. U.S. soybean carryover on Sept. 1, 2010, was projected at 190 million bushels, down 20 million, or 10%, from 210 million bushels projected in February but up 52 million, or 38%, from 138 million bushels in 2009, the USDA said. Soybean exports were projected at a record 1.4 billion bushels in 2009-10, up 20 million from February and up 11% from 1.3 billion bushels in 2008-09. Domestic soybean crush was projected at 1.7 billion bushels in 2009-10, up 10 million from February and up 68 million, or 4%, from a year earlier. Projected seed use at 89 million bushels was down 5 million from February and 1 million below a year earlier. Residual was unchanged from February at 83 million bushels. Soybean production in 2009 was estimated at 3.4 billion bushels, down 2 million from February but 13% above 2.97 billion bushels in 2008 and still record large. Soybean imports in 2009-10 were raised by 7 million bushels, to 15 million bushels. Total 2009-10 soybean supply was projected at 3.5 billion bushels, up 5 million from February and 10% above 3.2 billion bushels in 2008-09. Total use was projected at 3.3 billion bushels, up 25 million from February and up 9% from 3 billion bushels in 2008-09. The average farm price of soybeans in 2009-10 was projected at $8.95-$9.95 a bushel compared with $8.7-$10.2 in February, $9.97 in 2008-09 and $10.10 in 2007-08. Global soybean production in 2009-10 was projected at 255.91 million tonnes, up 890,000 tonnes from 255.02 million tonnes in February and up 45.01 million tonnes, or 21%, from 210.9 million tonnes in 2008-09. Ending stocks were projected at 60.67 million tonnes in 2009-10, up 940,000 tonnes from February and up 18.65 million tonnes, or 44%, from 42.02 million tonnes the previous year. Soybean production in Brazil was projected at a record 67 million tonnes, up 1 million tonnes from February and up 18% from 57 million tonnes in 2008-09. World Grain