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/14372/60/ Dutch bank Rabobank expects the raw sugar price to average 12.9 cents per lb in 2009, up from 10.3 cents per lb in 2008, as market fundamentals improve. "Rabobank's preliminary projections suggest a more constructive outlook for the market next year," the bank said in a statement on Monday. World Wed, 20 Aug 2008, 14:58:38 +0300 Dutch bank Rabobank expects the raw sugar price to average 12.9 cents per lb in 2009, up from 10.3 cents per lb in 2008, as market fundamentals improve. "Rabobank's preliminary projections suggest a more constructive outlook for the market next year," the bank said in a statement on Monday. Rabobank said investment funds had driven the rally in raw sugar futures. Prices have surged by 30 percent since December 2007. "Inflows of fund money into the sugar market have driven the current rally, in spite of a weak fundamental outlook for 2008," it said, referring to an oversupply of the sweetener. "The contrast between current prices and market fundamentals illustrates that the growing presence of the funds in the market has added a new and at times pivotal influence on market sentiment." The catalyst for sugar's rally was widely seen as being index fund portfolio rebalancing, Rabobank said. "In the last 12 months, prices for many other agricultural commodities have rocketed to levels not seen for decades," it added. "For these reasons, sugar appears to have been 'undervalued' over the last year, suggesting that it is likely to rise in price at some point in the future. This argument has provided significant incentive for funds to enter the sugar market." Lausanne-based consultancy Kingsman SA earlier this month forecast a global sugar surplus of 1 million tonnes in 2008/09, compared with a surplus of 9.4 million tonnes in 2007/08. Rabobank said market fundamentals would improve, in part because India's current crop was being marked down due to lower yields and a late start to the harvest, resulting from a dispute between millers, Uttar Pradesh authorities, and cane growers. Reuters http://www.ukragroconsult.com/content/view/14371/60/ Palm oil exports from the two key producers Malaysia and Indonesia are likely to rise in coming months despite current high palm oil prices, Hamburg-based oilseeds analysts Oil World forecast. "Despite the recent strength, palm oil is still attractive related to soyaoil," it said. World Wed, 20 Aug 2008, 14:57:54 +0300 Palm oil exports from the two key producers Malaysia and Indonesia are likely to rise in coming months despite current high palm oil prices, Hamburg-based oilseeds analysts Oil World forecast. "Despite the recent strength, palm oil is still attractive related to soyaoil," it said. "In fact its current very large discount relative to soyaoil is likely to result in very large purchases and global imports of palm oil in the medium term." Global supplies of sunflower oil, rapeseed oil, corn oil, groundnut (peanut) oil and cotton oil are all very tight and their prices are around record levels, it said. "Consumers are reacting and have started to switch to more attractively priced palm oil and soyaoil," it said. "This trend is likely to continue and will result in sharp increases in palm oil exports from Malaysia and Indonesia," it said. "The increasing biodiesel production in Argentina and Brazil will curb the growth in soyaoil export supplies. The US can only partly compensate for these losses." "The net result will be an additional shift in world vegetable oil import demand to palm oil." Reuters http://www.ukragroconsult.com/content/view/14370/60/ Beijing resumed buying soybean and soyoil for newly created government reserves last week to help secure food supplies and, eventually, to tame inflation, traders and industry officials said on Tuesday. World Wed, 20 Aug 2008, 14:57:08 +0300 Beijing resumed buying soybean and soyoil for newly created government reserves last week to help secure food supplies and, eventually, to tame inflation, traders and industry officials said on Tuesday. The sources said government reserve agencies had bought up to 50,000 tonnes of soyoil over the past week, adding to stockpiles that it launched in the latter half of last year as Beijing grows increasingly reliant on imported oilseeds. Some sources said it planned to buy about 200,000 tonnes in the current round, although exact tonnages could not be determined. The reserve is now believed to hold less than 1 million tonnes, a fraction of its 25 million tonne per year consumption of vegetable oils. "They realised one mistake: without sufficient stocks, you can't control the market," said a trader at an international house in Shanghai. "China definitely needs to go long these physical grains, instead of holding so many US dollars." On Tuesday, CBOT soy futures and Malaysian palm oil futures hit record highs, helped by hopes of Chinese buying following weather damage to China's rapeseed crop. The country's 2008 rapeseed crop is seen falling by 200,000 tonnes from last year despite an acreage increase, the country's top planning body said on Tuesday. "China relies for 60 to 70 percent of its (oilseeds) need on imports. And if you try to raise the domestic output, it might take land away from grains production," said Zhu Baoliang, chief economist with the State Information Center, a government think-tank. China's domestic output of oilseeds, including rapeseed, has come down from records in 2005, partly due to Beijing's policy to encourage farmers to grow more grains such as corn and wheat. While China is currently self-sufficient in corn, wheat and rice, its dependency on imported oilseeds and vegetable oils has grown each year, with soy imports expected to rise by 15 percent to 33 million tonnes in the year to end-September. Helped by anticipation of tight oils supply, cash soyoil prices in China gained more than 500 yuan per tonne ($69) since the country has resumed business after the Lunar New Year holidays last Wednesday. High prices of food have pushed inflation to an 11-year peak, and have also led Beijing to clamp price controls on a number of staples including cooking oil. Industry officials said Beijing planned to build 1.5 million tonnes of reserves in soyoil, the most popular cooking oil in China. It also aimed to stock 5 million tonnes of soy, which it needs to source from the United States or South America. It is unclear how much Beijing has bought so far, but industry figures think reserves are small. Beijing failed to release any vegetable oils stocks in the run-up to the Lunar New Year holidays this month, even though the market had expected it to do so. Asked if the soyoil reserves might have reached 1 million tonnes, an executive at an international trade house in Beijing said: "No way...I don't think they have much on hand. They are still in the process of accumulating." Traders and officials said once the government had stocks of more than 1 million tonnes, it could help stabilise prices, though it would be still a fraction of China's annual vegetable oils consumption estimated at about 25 million tonnes. Reuters http://www.ukragroconsult.com/content/view/14369/60/ Peruvian farmers upset over a free trade deal with the United States blocked rail service to the famous Inca ruins at Machu Picchu and closed key highways on Monday, prompting the government to say it may deploy the army to end the strike. World Wed, 20 Aug 2008, 14:56:24 +0300 Peruvian farmers upset over a free trade deal with the United States blocked rail service to the famous Inca ruins at Machu Picchu and closed key highways on Monday, prompting the government to say it may deploy the army to end the strike. The protests temporarily stranded thousands of travellers in the Andean nation, including some 400 people stuck on the train to the ancient Incan citadel, Peru's top tourist attraction. The Pan-American highway, the major road on the Peruvian coast, was blocked north and south of the capital, Lima, travellers and police said. Farmers nation-wide snarled traffic with tree trunks, rocks and sand. "The government only listens to us when we strike," said Antolin Huascar, the head of a national farmers' group. He said farmers would protest until the government agrees to meet with them about their demands. Police were able to reopen portions of some routes late on Monday, but travellers complained of violence at the hands of rock-throwing protesters. At least one person died, the government said. "The government demands the protest be ended and roads be opened without having to resort to military force," Jorge del Castillo, President Alan Garcia's cabinet chief, told reporters. "The army and the police will act immediately if necessary." Farmers are frustrated by rising fertiliser costs, want debt relief, and say a free trade deal with the United States will flood local markets with imports of subsidised US agricultural goods. Peru signed the free-trade agreement in December and plans to strike similar deals with China, Canada and Mexico soon. Peru exports grapes and asparagus to the United States, and the government says the trade pact will give local farmers permanent access to the US market. Reuters http://www.ukragroconsult.com/content/view/14368/60/ ROTTERDAM (February 20 2008): Tuesday's Rotterdam vegetable oil prices at 1700 GMT. SOYAOIL: EU degummed euro tonne fob ex-mill fob Ghent February 2008/April 2008 970.00 May 2008/July 2008 970.00 August 2008/October 2008 980. World Wed, 20 Aug 2008, 14:55:10 +0300 ROTTERDAM (February 20 2008): Tuesday's Rotterdam vegetable oil prices at 1700 GMT. SOYAOIL: EU degummed euro tonne fob ex-mill fob Ghent February 2008/April 2008 970.00 May 2008/July 2008 970.00 August 2008/October 2008 980.00 +18.00 November 2008/January 2009 990.00 +18.00. RAPEOIL: Dutch/EU euro tonne fob ex-mill February 2008/April 2008 975.00 May 2008/July 2008 985.00 +20.00 August 2008/October 2008 980.00 +30.00 November 2008/January 2009 990.00. SUNOIL: EU dollars tonne ex-tank six ports option March 2008 1825.00 -5.00 April 2008/June 2008 1795.00 -15.00 July 2008/September 2008 1790.00 +0.00 October 2008/December 2008 1670.00. SUNOIL: any origin dollars tonne cif Rotterdam unquoted. GROUNDNUT OIL: any origin dollars tonne cif Rotterdam unquoted. GROUNDNUT OIL: Braz/Arg/US dollars tonne cif Rotterdam. LINOIL: any origin dollars tonne ex-tank Rotterdam February 2008/March 2008 1485.00 +0.00. CRUDE PALM OIL: Sumatra/Malaysia slrs option dollars tonne cif Europe March 2008 1190.00 +30.00 April 2008/June 2008 1205.00 +20.00 July 2008/September 2008 1197.50 +17.50. PALMOIL: RBD dollars tonne cif Rotterdam March 2008 1280.00 +15.00 April 2008/June 2008 1277.50 +12.50. PALMOIL: RBD dollars tonne fob Malaysia March 2008 1197.50 +15.00 April 2008/June 2008 1195.00 +12.50. PALM OLEIN: RBD dollars tonne fob Malaysia March 2008 1207.50 +15.00 April 2008/June 2008 1205.00 +12.50. PALM STEARIN: dollars tonne fob Malaysia March 2008 1090.00 +0.00. PALM FATTY ACID DISTILLATE: dollars tonne fob Malaysia March 2008 725.00 -10.00. COCONUT OIL: Phil/Indon dollars tonne cif Rotterdam March 2008/April 2008 1400.00 +20.00 April 2008/May 2008 1410.00 +25.00 May 2008/June 2008 1420.00 June 2008/July 2008 1425.00. PALMKERNEL OIL: Mal/Indon dollars tonne cif Rotterdam March 2008/April 2008 1405.00 +45.00 April 2008/May 2008 1415.00 +25.00. TUNGOIL: any origin dollars tonne ex-tank Rotterdam February 2008/March 2008 2450.00 +0.00. CASTOROIL: any origin dollars tonne ex-tank Rotterdam February 2008/March 2008 1475.00 +0.00. Reuters http://www.ukragroconsult.com/content/view/14367/60/ The Australian Stock Exchange is setting up a new wheat export market in Western Australia. Grain market analysts say Australian grain growers can no longer use the Chicago Board as a fair indicator, because financial traders have pushed grain prices unrealistically high. World Wed, 20 Aug 2008, 14:38:14 +0300 The Australian Stock Exchange is setting up a new wheat export market in Western Australia. Grain market analysts say Australian grain growers can no longer use the Chicago Board as a fair indicator, because financial traders have pushed grain prices unrealistically high. Chairman of EP Grain, Mike Chaseling, welcomes the move. "We're very supportive of a West Coast futures contract that has the potential to become the real pricing benchmark for South-East Asian wheat consumers and producers in Australia, of course." ABC Rural N http://www.ukragroconsult.com/content/view/14366/60/ Much of the spring-sown grain harvested in central Sweden has been poorer quality and is destined to be used as feed, according to Mikael Jeppsson at Lantm nnen. The main reason for the poorer quality has been the wet autumn weather. World Wed, 20 Aug 2008, 14:37:20 +0300 Much of the spring-sown grain harvested in central Sweden has been poorer quality and is destined to be used as feed, according to Mikael Jeppsson at Lantm nnen. The main reason for the poorer quality has been the wet autumn weather. Jeppsson estimates that 80-90% of the grain crop in central Sweden is still to be harvested and he is concerned about the continuing wet weather. Svenska Dagbladet http://www.ukragroconsult.com/content/view/14365/60/ By August 1 this year, agricultural enterprises (except for small-scale), as well as the enterprises keeping and processing grain crops, accumulated 19.3 million tons of grain (which is 42% up on August 1, 2007), including 12. Ukraine Wed, 20 Aug 2008, 14:32:35 +0300 By August 1 this year, agricultural enterprises (except for small-scale), as well as the enterprises keeping and processing grain crops, accumulated 19.3 million tons of grain (which is 42% up on August 1, 2007), including 12.6 million tons of wheat (34% up). According to the State Statistics Committee, 11.7 million tons of grain (34% up) was kept directly at farms, including 7.5 million tons of wheat (29% up). Grain keeping and processing enterprises had 7.6 million tons of grain (56% up), including grain saving companies 5.6 million tons (73% up). In January - July this year, the average purchase price of grain crops proposed by saving and processing enterprises was UAH 1,130 per ton (UAH 754 last year), including wheat UAH 1,109 (UAH 738), rye UAH 1,116 (UAH 765), and barley UAH 1,203 (UAH 757) per ton (UAH 4.84 / USD 1). In July this year, these companies purchased grain crops averagely at UAH 998 per ton, which is 13% less than in June, including wheat at UAH 976 (12% less), rye at UAH 1,024 (14% less), and barley at UAH 949 per ton (24% less). http://www.ukragroconsult.com/content/view/14364/60/ Grain exports in 2008/09 MY are expected to reach 17.5 mln tonnes, as opposed to 3.7 mln tonnes in the previous MY, according to the Ukrainian Grain Association, according to APK-Inform. Ukraine predicts exporting nearly 17. Ukraine Wed, 20 Aug 2008, 14:31:20 +0300 Grain exports in 2008/09 MY are expected to reach 17.5 mln tonnes, as opposed to 3.7 mln tonnes in the previous MY, according to the Ukrainian Grain Association, according to APK-Inform. Ukraine predicts exporting nearly 17.5 mln tonnes of grain, along with 2 mln tonnes of rapeseed. However, only coordinated work among ports, railway and other transport services will allow for such large volumes of export, said Vladimir Klimenko, the President of the Ukrainian Grain Association. According to V.Klimenko, Ukraine will export 7-8 mln tonnes of wheat, 5-6 mln tonnes of barley and nearly 3.5 mln tonnes of maize. Such export volumes should prevent the fall of grain prices. This marketing year, believed to be the best export year the country has had, all export mechanisms will be required to operate well to accommodate shipments. Previous export records for Ukraine were a high of 13.2 mln tonnes of grain, V.Klimenko said. The Ministry of Agriculture Policy forecasts grain exports to reach 17.513 mln tonnes, up 4.7 times compared to the previous MY. UkrAgroConsult<br/> http://www.ukragroconsult.com/content/view/14363/60/ The ban of wheat exports will be lifted as of September 1st. This was the decision made by RK Prime Minister, Karim Massimov, at the end of the RK Ministry of Agriculture session, Kazinform reports. After hearing the reports on harvesting and procurement of wheat by the stabilization funds, the Prime Minister noted that the main objective set before the Government by the Head of State is maintanence of stability within the country. News Wed, 20 Aug 2008, 14:29:09 +0300 The ban of wheat exports will be lifted as of September 1st. This was the decision made by RK Prime Minister, Karim Massimov, at the end of the RK Ministry of Agriculture session, Kazinform reports. After hearing the reports on harvesting and procurement of wheat by the stabilization funds, the Prime Minister noted that the main objective set before the Government by the Head of State is maintanence of stability within the country. “Price of bread is one of those indicators, which the population uses to judge the work of the government. Last year in fall, when bread prices on the domestic market started to fluctuate, immediately a negative reaction was felt from the public. Therefore this is our primary objective – to provide and guarantee the price target which is dictated by the domestic market today”, - said K. Massimov The Prime Minister instructed the Ministry of Agriculture, within a week to oversee the signing of memorandums with those regions which have a deficit in wheat supply. In the period from new year until the next harvest, wheat supply will be maintained by the reserves of the Product Corporation. K. Massimov also gave orders to the Ministry of Finance and Ministry of Economy to tackle the issue of allocating resources from the reserves, towards capitalization of “Product Corporation” in the amount of 7.2 bln tenge. “If we are fulfilling all these requirements, then there is no need to continue the ban on wheat export. Therefore we are adopting a decision to lift the ban on September 1st. So start preparing, and begin negotiating contracts with suppliers”, - stated the Prime Minister. BBC Monitoring http://www.ukragroconsult.com/content/view/14362/60/ During the session at the Ministry of Agriculture, minister Akylber Kurishbayev informed that as of August 10th the volume of wheat in Kazakhstan has reached 2mln tons, Kazinform reports. According to the minister, about 1 mln hectars of wheat fields, or 10% of the overall area, has been harvested. News Wed, 20 Aug 2008, 14:27:43 +0300 During the session at the Ministry of Agriculture, minister Akylber Kurishbayev informed that as of August 10th the volume of wheat in Kazakhstan has reached 2mln tons, Kazinform reports. According to the minister, about 1 mln hectars of wheat fields, or 10% of the overall area, has been harvested. More than 1 mln tons of wheat has been milled. According to the data of regional akimats, gross wheat harvest will amount to about 17 mln tons. Annual consumption demand for wheat is about 3.4 mln tons. In order to maintain the supply of this volume, memorandums about supply of wheat and flour were signed between regions that are short in wheat supply and Northern regions as well as Wheat Union of Kazakhstan. For renewal of the state reserve, procurement of 400,000 tons of wheat will take place and stabilization reserves of 600,000 tons of wheat will be created. “For realization of these reserves, in the upcoming days, the Ministry will establish quotas for sale of wheat to the “Product Corporation” by the main wheat harvesting regions”, - said A. Kurishbayev. Kazinform National Company http://www.ukragroconsult.com/content/view/14361/60/ The overall volume of the shipped cargo for the first 7 months of 2008 amounted to 1 million 16.2 thousand tons which is 39.4% more than the volume of same period of 2007. The volume of shipped metal amounted to 969,2 thousand tons; grain - 73,6 thousand tons. News Wed, 20 Aug 2008, 14:26:51 +0300 The overall volume of the shipped cargo for the first 7 months of 2008 amounted to 1 million 16.2 thousand tons which is 39.4% more than the volume of same period of 2007. The volume of shipped metal amounted to 969,2 thousand tons; grain - 73,6 thousand tons. For the first 7 months of 2008, the port processed 1,088 vessels. In July of 2008, Aktau port has shipped more than 803,385 thousand tons of oil. Kazinform National Company http://www.ukragroconsult.com/content/view/14360/60/ Sofia. Bulgarian farmers have initiated a campaign against the state in effort to pump up the plummeting grain prices, the Sega Daily informs. Surprisingly yesterday the Association of Bulgarian grain producers rejected the information of the Agriculture ministry for record high crops. News Wed, 20 Aug 2008, 14:26:12 +0300 Sofia. Bulgarian farmers have initiated a campaign against the state in effort to pump up the plummeting grain prices, the Sega Daily informs. Surprisingly yesterday the Association of Bulgarian grain producers rejected the information of the Agriculture ministry for record high crops. The official statistics shows that this year’s crops is record high for the last 16 years. The news sent the grain prices plummeting down on the commodities exchange. The grain crops is enough and is with good quality. Bread will not grow more expensive, head of the Bulgarian Association of Bread Producers Dimitar Lyudiev said. This is a rumor spread by some large producers in effort to keep bread prices high, despite the cheaper grain this year, Lyudiev added. Press-Club Kazakhstan http://www.ukragroconsult.com/content/view/14359/60/ Government decided to allocated KZT 7.2bn (USD 59.93mn) for capitalization of National Food Corporation. According to PM Karim Masimov, the relevant orders were forwarded to FinMin and EconMin. PM stressed that the company already has KZT 10. News Wed, 20 Aug 2008, 14:23:54 +0300 Government decided to allocated KZT 7.2bn (USD 59.93mn) for capitalization of National Food Corporation. According to PM Karim Masimov, the relevant orders were forwarded to FinMin and EconMin. PM stressed that the company already has KZT 10.8bn of own funds that can be used to purchase grain. As we reported earlier National Food Corporation plans to purchase 600thsd tons of grain to stabilization fund during the harvest period when the prices are low. The collected grain will be sold for interventions when domestic prices increase after the New Year. In 2007, National Food Corporation raised net profit by 70% y/y to KZT 433mn (USD 3.6mn). Revenues rose 4.5% y/y to KZT 23.4bn while cost of goods sold decreased 1.3% y/y to 18.92bn. Assets went up 27.9% through 2007 to KZT 74.297bn. Liabilities increased by 33.9% to KZT 48.11bn. National Food Corporation is a part of KazAgro. It operates 10 regional offices in Kazakhstan and has representatives in UK , Russia , China , Iran and Azerbaijan . The company is the operator of grain purchase and the government’s grain reserves. ISI - Intellinews http://www.ukragroconsult.com/content/view/14358/60/ The government decided to increase the ceiling on the state reserves of wheat to 400 thousand tonnes from 350 thousand tonnes last year, citing the large 7mn tonnes wheat crop and the prospects for adverse weather conditions during the next year. News Wed, 20 Aug 2008, 14:22:50 +0300 The government decided to increase the ceiling on the state reserves of wheat to 400 thousand tonnes from 350 thousand tonnes last year, citing the large 7mn tonnes wheat crop and the prospects for adverse weather conditions during the next year. The ministry of agriculture will draft an ordinance with this effect. However the state’s intervention instruments are limited within framework of the EU agriculture policy, as long as the EUR 101.3 per ton intervention price is much below the current market prices. Moreover, the state is confined to purchase grains at the said intervention price during Nov-May, which does not help the small farmers with no storage capacity. The government’s decision comes after President Traian Basescu urged the state bodies to store more wheat in order to help small farmers that can not sell their crops. The state’s wheat reserves have gradually decreased from 1.2mn tonnes before 1996 and it became subject to speculations as it is managed by private depositors. The large traders purchase at low collection prices the crops from the small farmers during the harvesting period and further take advantage of the higher market prices. ISI - Intellinews http://www.ukragroconsult.com/content/view/14357/60/ The data was provided by the Minister of agriculture and food industry Anatolie Gorodenco at the Flood Consequences Liquidation Commission’s sitting, InfoMarket agency was informed at the Ministry of economy and trade of Moldova. News Wed, 20 Aug 2008, 14:21:50 +0300 The data was provided by the Minister of agriculture and food industry Anatolie Gorodenco at the Flood Consequences Liquidation Commission’s sitting, InfoMarket agency was informed at the Ministry of economy and trade of Moldova. Gorodenco added the floods had damaged 5365 hectares of agricultural lands and 473 hectares of private vegetable gardens. He said the Ministry would set the humanitarian assistance volume within the next few days to be distributed among the people whose vegetable gardens were flooded. They will receive wheat, sugar, oil and other products. It was said at the sitting that the state had already supplied those who suffered from the floods with 24 tones of humanitarian aid including flour, sugar, oil and other production. InfoMarket http://www.ukragroconsult.com/content/view/14356/60/ Continuing to buy grain in Kazakhstan, Kyrgyzstan intends to import it from Russia as well, the agency reports referring to the Ministry of Agriculture, Water Management and Processing Industry of Kyrgyzstan. News Wed, 20 Aug 2008, 14:19:40 +0300 Continuing to buy grain in Kazakhstan, Kyrgyzstan intends to import it from Russia as well, the agency reports referring to the Ministry of Agriculture, Water Management and Processing Industry of Kyrgyzstan. According to the department, the Minister of Agriculture of Kyrgyzstan, Arstanbek Nogoyev, talked about possibility of such import during his recent visit to Russia. During the negotiations with his Russian counterpart, Alexey Gordeyev, the parties emphasized the necessity of renewal of mutual deliveries of various agricultural products. A. Gordeyev stated that, having received this year for the first time over 15 years a record harvest of grain, Russia intends to export part of its grain to WTO member countries, including Kyrgyzstan. Kazakhstan today http://www.ukragroconsult.com/content/view/14355/60/ Chisinau, August 15. Moldova is not interested in building up the rape area, though initially it was in the Government's plans to allocate up to 100 thousand hectares for this technical crop. Consequently, the national rape cultivation program was cancelled last week, consultant Ion Guci of the Ministry of Agriculture and Food Industry told Infotag. News Wed, 20 Aug 2008, 14:18:32 +0300 Chisinau, August 15. Moldova is not interested in building up the rape area, though initially it was in the Government's plans to allocate up to 100 thousand hectares for this technical crop. Consequently, the national rape cultivation program was cancelled last week, consultant Ion Guci of the Ministry of Agriculture and Food Industry told Infotag. "Rape, like sunflowers, brings exceptional harm to the quality of soils, so we have decided that this crop should occupy not more than 5% of the total farmland area, i.e. not more than 50 thousand hectares each year", the expert explained. This year, for instance, winter rape fields covered 52.9 thousand hectares and summer rape - 289 hectares. By now, the harvesting is over, and the total gain amounted to 120 thousand tons, with an average yield of 2.26 tons/ha, "which is a pretty good figure for us, bearing in mind that in previous years the average yield did not exceed 1.9 tons/ha", Ion Guci said. Now, a part of the crop will be exported, another part will be processed in Moldova, and the rest will be used as seeds next year. Last Tuesday, there was an offer at the Moldova Stock Exchange to buy 3,000 tons of rape at a price of 5,000 lei/ton. According to European Union's decision, by year 2010 some 5.75 percent fuel used by the European transport must be a biological fuel made of rape. This circumstance prompted at least 3 major investors to launch rape businesses in Moldova. These are the Bio Company Raps of Germany, which built and commissioned a rape processing plant in Briceni town in late 2007, the FuelMarkers company of the United States, which is going to build an analogous enterprise here, and the WJ company of Russia, which was going to build a rape processing plant on the basis of the Floarea Soarelui sunflower treating enterprise in the Moldovan city of Balti. Kazakhstan today http://www.ukragroconsult.com/content/view/14354/60/ According to the analysts of the Expert Grup, from the list of goods exported in 1995, such products as beef, pork and dairy products (in particular because of inability to comply with European standards of health and food safety), cigars and cigarettes, unprocessed tobacco, pumps, some cereals (wheat, maize) and tomato canned food have disappeared in 2007. News Wed, 20 Aug 2008, 14:12:19 +0300 According to the analysts of the Expert Grup, from the list of goods exported in 1995, such products as beef, pork and dairy products (in particular because of inability to comply with European standards of health and food safety), cigars and cigarettes, unprocessed tobacco, pumps, some cereals (wheat, maize) and tomato canned food have disappeared in 2007. On the other hand, among the first 15 categories of goods exported in 2007, new products, such as plaster goods, nuts, sunflower seeds and steel products have appeared. At the same time, the trend to diversification and reduction of concentration of Moldovan export at the European markets has been observed. Thus, in 1995 Moldova exported 482 products to EU, and in 2007 their number made 589. For example, export of Moldova to the western CIS countries (Russia, Ukraine and Belarus) decreased (from 1049 positions in 1995 up to 731 in 2007). The experts also noted that in 1995- 2007, overall structure of Moldovan export has significantly changed and the share of energy resources has also fallen. Thus, the share of these products decreased from 45.5% in 1995 up to 21% in 2007. / / 15.08.2008 – InfoMarket InfoMarket http://www.ukragroconsult.com/content/view/14353/60/ The Russian Agricultural Bank, or Rosselkhozbank, plans to disburse 36.1 billion rubles to finance the government's purchases of grain, the bank said in a statement Friday. On Friday, the bank's supervisory board approved the terms of financing for the grain purchases. News Wed, 20 Aug 2008, 14:10:02 +0300 The Russian Agricultural Bank, or Rosselkhozbank, plans to disburse 36.1 billion rubles to finance the government's purchases of grain, the bank said in a statement Friday. On Friday, the bank's supervisory board approved the terms of financing for the grain purchases. The financing will be provided for 36 months and will be guaranteed by the purchased grain, the bank said. The government will start purchasing grain on August 19, according to earlier reports. Also, the bank's supervisory board approved the financial results for January-June on Friday. The bank disbursed loans worth 138 billion rubles in January-June, up 20% on the year. Its total loan portfolio exceed 360 billion rubles as of July 1. The bank's shareholders' equity rose 8% in January-June to 51.9 billion rubles as of July 1. The supervisory board also approved opening a representative office of Rosselkhozbank in Dushanbe, the capital of Tajikistan. Rosselkhozbank, which is owned by the government, focuses on lending to farmers. Prime-TASS http://www.ukragroconsult.com/content/view/14352/60/ Within two days three agreements on cooperation and expansion of inter-regional links have been signed by Nurgali Ashimov, South-Kazakhstan oblast governor and leaders of Akmola, Kostanai and North-Kazakhstan oblasts. News Wed, 20 Aug 2008, 14:08:38 +0300 Within two days three agreements on cooperation and expansion of inter-regional links have been signed by Nurgali Ashimov, South-Kazakhstan oblast governor and leaders of Akmola, Kostanai and North-Kazakhstan oblasts. Northern regions promise to provide milling businesses with about 300 000 tons of grain and flour. Saturation of consumers’ market with cheap bread and flour are priorities of local executive power’s activity. The state leader instructed the oblast akims to create stabilization funds in the regions. South Kazakhstan receives grain from northern regions. Price for basic product must be affordable for low-income social groups (about 200 000 local residents). SKO authorities regularly control grain and flour supplies. Permanent grain reserve in the region is about 30 000 tons. Heads of milling businesses realizing responsibility in the area, signed memorandums with the oblast akimat on provision of local residents with bread first and only after that exporting the remaining products. Southern businessmen working in the area have partnership relations with many producers. They are interested in delivery and processing of grains, selling of flour at internal market and its consignments to Uzbekistan, Tajikistan, China and Afghanistan. For example in 2007 over 400 000 tons of grain were delivered from Akmola oblast to SKO. This is a mutually profitable business, which must be expanded. By the way an official delegation of SKO businessmen went to southern regions to sign corresponding contracts. The talk will concern social grain, price of which is established by Gosprodcorporation. Meetings with producers themselves are rare, Bakaram Abdukarimov, president of LLP “Altyn dan” complained. They often meet with dealers instead, re-selling grains to derive personal revenues from that. He said direct contacts with producers would be much more beneficial, naturally. In compliance with the memorandum, signed by SKO governor N.Ashimov and A.Rau, Akmola oblast governor 50 000 tons of grain (not lower than 3rd class) and 30 000 tons of flour will be delivered to SKO. Kostanai oblast is to deliver 150 000 tons of grain. The deliveries start in October. The signed memoranda are registered in the Government. Delivery schedules will be defined for all the three oblasts, SKO governor said. Businessmen’s interests must be taken into account too. The visit and meeting with businessmen and producers will stimulate mutually profitable partnership relations, the governor hopes. Uzbekistan, Tajikistan and Afghanistan are interested in Kazakhstan grain too. Lubov Dobrota Shymkent-Kokshetau-Petropavlovsk-Kostanai-Shymkent Kazakhstanskaia pravda http://www.ukragroconsult.com/content/view/14351/60/ Excerpt from report by state-owned Kazakh news agency Kazinform Astana, 16 August: Kazakh wheat exporters may face difficulties due to wheat production growth in Russia and Ukraine. The [Kazakh] minister of agriculture, Akylbek Kurishbayev, said this at a session in the ministry chaired by Prime Minister Karim Masimov, a Kazinform [news agency] correspondent reports. News Wed, 20 Aug 2008, 14:07:51 +0300 Excerpt from report by state-owned Kazakh news agency Kazinform Astana, 16 August: Kazakh wheat exporters may face difficulties due to wheat production growth in Russia and Ukraine. The [Kazakh] minister of agriculture, Akylbek Kurishbayev, said this at a session in the ministry chaired by Prime Minister Karim Masimov, a Kazinform [news agency] correspondent reports. Akylbek Kurishbayev said that Russia may harvest 90-96m tonnes of grain and legume crops this year against 81.8m tonnes harvested last year. It was forecasted that gross grain crop in Ukraine would be at the level of 40m [tonnes] this year, including 20m [tonnes] of wheat, against 28,5m tonnes [of grain], including 13.9m tonnes of wheat last year. "Due to an intensive wheat shipping for export by Russian and Ukrainian traders in September-December of the current year, the Black Sea and Azov Sea ports will be busy till next year. This will impede Kazakh grain exports due to the congestion of wagons in the ports," the minister said. [Passage omitted difficulties in trading with Iran due to UN sanctions; high export railway tariffs, making Kazakh wheat prices up] BBC Monitoring http://www.ukragroconsult.com/content/view/14335/60/ The Russian Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) prohibited dry milk exports from Ukraine to Russia from August 20, Rosselkhoznadzor’s press service reported. Ukraine Wed, 20 Aug 2008, 13:31:10 +0300 The Russian Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) prohibited dry milk exports from Ukraine to Russia from August 20, Rosselkhoznadzor’s press service reported. Rosselkhoznadzor imposed the ban following an inspection of Ukraine’s milk processing enterprises. On July 11, Rosselkhoznadzor completed examinations of 31 Ukrainian dairy plants. According to the results of 6 joint inspections carried out in 2006 - 2007, 28 Ukrainian enterprises were given permits to export their animal products to Russia. Please remember that a ban on Ukrainian animal product imports to Russia was imposed on January 20, 2006. UkrAgroConsult<br/> http://www.ukragroconsult.com/content/view/14334/60/ The Cabinet of Ministers by its resolution #703 of August 6 permitted the Agrarian Fund to buy grain for the food reserves for weighted average prices. According to the resolution, the government permitted the Agrarian Fund to make purchases (not related to the state price regulation) of the Y2008 crop food grain for the state food reserves for weighted average prices which settled during the previous three trading sessions on the Agricultural Exchange and certified accredited commodity exchanges. Ukraine Wed, 20 Aug 2008, 13:30:17 +0300 The Cabinet of Ministers by its resolution #703 of August 6 permitted the Agrarian Fund to buy grain for the food reserves for weighted average prices. According to the resolution, the government permitted the Agrarian Fund to make purchases (not related to the state price regulation) of the Y2008 crop food grain for the state food reserves for weighted average prices which settled during the previous three trading sessions on the Agricultural Exchange and certified accredited commodity exchanges. If these prices sink to the set minimum price level the Agrarian Fund must make grain purchases directly from agricultural enterprises for minimum prices set for the state price regulation commodities. Please remember that, according to the current legislation, the Agrarian Fund must purchase 14% of the total food grain consumption volume (i.e. 881 KMT) for the state food reserves in 2008. In 2007, the Agrarian Fund bought 428.5 KMT of the Y2007 crop food grain within the framework of establishing the state food reserves. UkrAgroConsult<br/> http://www.ukragroconsult.com/content/view/14333/60/ The United Nations Organization is ready to buy Ukraine’s grain surplus for aid to starving countries and thereby to unload our domestic market. The Agrarian Fund, which was authorized by the government to carry out foreign trade activity last week, can act as a middleman in making this bargain. Ukraine Tue, 19 Aug 2008, 15:12:38 +0300 The United Nations Organization is ready to buy Ukraine’s grain surplus for aid to starving countries and thereby to unload our domestic market. The Agrarian Fund, which was authorized by the government to carry out foreign trade activity last week, can act as a middleman in making this bargain. In late August, representatives of the UN Food and Agricultural Organization (FAO) will arrive in Ukraine to negotiate a commercial purchase of some part of the surplus crop for starving countries. Ukrainian officials have repeatedly declared our readiness to participate in overcoming the global food crisis. All issues related to providing the world with food have so badly aggravated that almost all countries or their associations, all financial groups of the world have adopted special programs now to withstand the global food crisis. UkrAgroConsult<br/> http://www.ukragroconsult.com/content/view/14332/60/ Jordan's state grain purchasers issued a tender on Sunday for 100,000 tonnes of optional origin hard wheat for shipment in October, officials said. The ministry of trade and industry, in charge of buying wheat for the kingdom, said the closing date for bids was August 28. World Tue, 19 Aug 2008, 15:09:36 +0300 Jordan's state grain purchasers issued a tender on Sunday for 100,000 tonnes of optional origin hard wheat for shipment in October, officials said. The ministry of trade and industry, in charge of buying wheat for the kingdom, said the closing date for bids was August 28. Half of the amount would be delivered in the first half of October and the rest in the second half of that month. An official said they accelerated the announcement of a new tender after purchasing only 50,000 tonnes of Russian wheat at $361 a tonne c f last Wednesday, for shipment in the second half of October, in a tender for double that amount. Jordanian officials said a drop in global wheat prices from their peaks since mid-March encouraged the kingdom to step up purchases in coming weeks. Officials say new purchases would have the goal of maintaining a comfortable six-month supply of around 360,000 tonnes. Jordan's monthly consumption of wheat is between 58,000 to 60,000 tonnes. Jordan's purchases of US wheat fell in recent years with Russia, Ukraine, Kazakhstan and Syria emerging as the main suppliers as their prices were the most competitive, officials say. Reuters http://www.ukragroconsult.com/content/view/14331/60/ Following a unanimous recommendation by the Wheat Pit Committee, the board of directors for the Kansas City Board of Trade (KCBT) unanimously approved changes in the settlement procedures for the KCBT Hard Red Winter wheat futures contract, the board announced Aug. World Tue, 19 Aug 2008, 15:06:48 +0300 Following a unanimous recommendation by the Wheat Pit Committee, the board of directors for the Kansas City Board of Trade (KCBT) unanimously approved changes in the settlement procedures for the KCBT Hard Red Winter wheat futures contract, the board announced Aug. 15. The changes are effective on Tuesday, Sept. 2, 2008, subject to Commodity Futures Trading Commission approval. The exchange Wheat Pit Committee held special meetings in recent months to address the issue of individual contract months settling out of line with spread trade. Current settlement procedures require all contract months to settle based on the weighted average of trade in each contract month. At times, these procedures create disparities between individual contract month settlements and the traded spread differentials between contract months. In an effort to mitigate these disparities, the Wheat Pit Committee and board approved changes that provide for settlements on all but the lead contract month based on spread relationships. The settlement price of the lead contract month (defined as the contract month with the largest open interest) shall be determined by the weighted average method of the trades in the closing period as reflected in the information reported to the pit reporter and committee in accordance with KCBT rules. The remaining contract months shall be settled based on spread price relationships, considering spread trades reported during the close. If individual spreads trade at multiple prices during the close, the committee shall use the weighted average of spread prices in determining the settlement. The lead contract month settlement price shall serve as the initial spread relationship basis point for adjacent contract months, whose settlement can then be used in chronology to determine deferred month settlements. If no spreads involving a particular contract month traded during the close, the committee shall take into consideration other market information available to the committee that is pertinent to such contract month, including but not limited to: spread bids and offers; the latest quoted spread trade; the latest outright trades, bids or offers; and the settlement price differentials that existed on the previous day in order to determine a settlement price that most accurately reflects the relationship between such month and surrounding contract months. It is possible that the settlement prices established as a result of spread price relationships could result in settlement prices that violate either open outright contract month or spread orders. No such orders shall be elected and brokers shall not be held liable on orders violated as a result of such settlement price procedure. world-grain.com http://www.ukragroconsult.com/content/view/14330/60/ ABB Grain’s first bulk shipment of Ukrainian feed barley, purchased from its joint venture company New World Grain, is currently being loaded at Sevastopol for the Middle East, the company announced Aug. Ukraine Tue, 19 Aug 2008, 15:05:42 +0300 ABB Grain’s first bulk shipment of Ukrainian feed barley, purchased from its joint venture company New World Grain, is currently being loaded at Sevastopol for the Middle East, the company announced Aug. 18. Nearly 40,000 tonnes of recently harvested Ukrainian barley is being loaded aboard the merchant vessel, Salome, which was chartered by ABB’s freight trading department. ABB Grain’s managing director, Michael Iwaniw, said ABB had sold the grain to Oman and the United Arab Emirates, two long-established customers. The barley was expected to arrive in Oman in about two weeks. "This is an important occasion for ABB Grain following our announcement last year to establish a joint venture company in Ukraine, the world’s second biggest barley exporter, with French agribusiness, Soufflet Negoce," Iwaniw said. "Since late last year, we’ve been working hard to establish New World Grain and necessary relationships and infrastructure that enable us to accumulate grain, store it and move it to port. "Exporting barley from Ukraine in no way signals any diminution of ABB’s commitment to the Australian grains market; if anything it strengthens it because it enables us to extend our international shipping program for most of the year, supplying grain to our customers from both the Australian and Ukrainian harvests." Last week, leading agricultural agencies reported that Ukraine expected to increase its grain crops this harvest to 43 million tonnes (up from 29 million tonnes last year) and forecasted grain exports would rise to17.5 million tonnes (up from 4 million tonnes last year), ABB said. world-grain.com http://www.ukragroconsult.com/content/view/14329/60/ AWB Limited will try, for the second time, to dismantle its dual shareholder structure at a special meeting in mid-August 2008. Now that the single desk is finished, the company needs a revised structure in order to generate fresh equity capital to compete in a competitive grain market. World Tue, 19 Aug 2008, 15:04:38 +0300 AWB Limited will try, for the second time, to dismantle its dual shareholder structure at a special meeting in mid-August 2008. Now that the single desk is finished, the company needs a revised structure in order to generate fresh equity capital to compete in a competitive grain market. AWB CEO, Gordon Davis, says it will be difficult to get over some of the boardroom politics, but he believes that the new commercial reality will help. The following companies were referenced in the original article Australian Financial Review http://www.ukragroconsult.com/content/view/14328/60/ Russia's grain harvest has amounted to 65 million tonnes so far this year, 37.1% higher than at the same time last year, the Agriculture Ministry said in a statement Monday, ITAR-TASS reported. The ministry added that 20. News Tue, 19 Aug 2008, 15:03:43 +0300 Russia's grain harvest has amounted to 65 million tonnes so far this year, 37.1% higher than at the same time last year, the Agriculture Ministry said in a statement Monday, ITAR-TASS reported. The ministry added that 20.7 million hectares, or 44.6% of the planted area, had been harvested so far. The country's grain harvest is expected to exceed the last forecast of at least 85 million tonnes in 2008, Agriculture Minister Alexei Gordeyev said earlier in August. Meanwhile, the Russian Grain Union projects that the country's farmers will harvest up to 95 million tonnes of grain this year. Prime-Tass