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Ukraine will not halt wheat exports…

Reversing earlier reports, Ukraine says they will not halt wheat exports on November 15th. The press service of the Social Policy Ministry says the Cabinet of Ministers of Ukraine did not consider restricting grain exports and is not planning to make such a decision. The Ministry says global grain stocks are at a low level and prices are going up and “Our grain growers should be given a chance to obtain a good reward for their labor.”

Last week Ukraine’s Agriculture Ministry said due to the weather the fall harvest was below expectations and with the high pace of exports, they would ban wheat exports effective November 15th. The ban was never confirmed by the prime minister. Now the Ag Ministry says they will consider all necessary measures if the country’s wheat stocks fall to a critical level but for now, no critical state exists.

Reuters cites traders who say the country does not have enough wheat in stock to keep exports at the current pace so some kind of curbs are likely. Dow Jones says grain traders and government officials met on October 19th and agreed no wheat would be exported after November 15th. So while there may not be any official government ban, exports will probably stop because “no trader would dare act against the government’s wishes.”

After a disappointing harvest in 2010, Ukraine imposed complicated customs requirements which effectively limited exports.