China to remain a key market for Ukrainian grain

22.08.2018

A main achievement of Ukrainian grain exporters in the 2017/18 season was a substantial strengthening of their position in the market of China. So, Chinese importers stepped up purchases of Ukrainian barley to 790 KMT in July 2017 – June 2018. Barley imports in the 2016/17 season totaled 300 KMT, reports UkrAgroConsult.

The flour market also witnessed a considerable rise in shipments to China last season. Remaining the top buyer, China actually doubled flour imports from Ukraine to 125 KMT (81 KMT in MY 2016/17).

At last, although the corn season has not yet finished, it can be said already now that China's share in Ukrainian corn exports has expanded significantly (to an estimated 15%). So, Chinese buyers boosted purchases by 84% in September-July, to 2.7 MMT against 1.5 MMT in the previous season.

The first month of the season witnesses a drop in barley imports to the Chinese market. July's deliveries totaled 66 KMT. Meanwhile, despite a fall in export potential because of a 15% barley crop decrease, UkrAgroConsult experts are still quite optimistic in their estimates for both barley and corn exports to China.

Moreover, "additional demand" for corn from the Chinese booming bioethanol industry may become the main driver for Ukrainian exporters.

More detailed information on the latest trends in grain exports, supply and demand balances with breakdown by crop, price behavior as well as on crop conditions and progress in harvesting in the countries of Black Sea Region is available to subscribers for weekly market report "Black Sea Grain" by UkrAgroConsult.

 

UkrAgroConsult

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