Ukraine's corn export cap agreed at 24 million mt: ministry

Ukraine’s agriculture ministry and representatives of the industry have agreed on a corn export cap set at 24 million mt to govern exports through to June 30, an official notice from the government said Monday.

The parties also agreed to re-assess and potentially revise the limit after publication of the final production number by the country’s statistical agency, if needed.

The agreement coincided with news that the ministry has increased its corn export estimate to 23.5 million mt earlier today, a move that has raised expectations that any cap will only amount to a nominal volume and unlikely to be enforced as a real restriction.

“Determining the maximum export volumes of grains in accordance with the signed Memorandum between the Ministry of Economy and the associations representing the participants of the grain market is a symbolic step. This is the so-called "landmark", which provides market predictability and certainty for all its participants,” a notice on the ministry’s website said.

At 22 million mt, the approved quota is 2 million mt higher compared to levels previously discussed.

Since the start of the marketing year on July 1 through to January 22, Ukraine has exported 11 million mt of corn.

Port line up data suggests that slightly above 1 million mt of corn is scheduled to be loaded in late January and February, meaning there is still up to 12 million mt of corn left for export within the quota.