Japan has bought one cargo of Ukrainian maize, in the first shipment of the grain between the countries in over a year, Ukrainian trade sources said on Wednesday. "One Panamax with Ukrainian maize, on Monday," one Ukrainian trader told Reuters. Another trader said the price was around $260-$264 per tonne FOB, but gave no more details.
Ukraine plans to harvest a record maize crop in 2011 at about 19-20 million tonnes and agriculture officials have said the maize exports could total up to 12 million tonnes in the 2011/12 season. Other trade sources added Japan planned to buy further cargoes bringing its total purchases of Ukrainian maize to up to several hundred thousand tonnes. A Panamax is a type of vessel capable of carrying up to 60,000 tonnes.
"The deal means that Japan is looking for new sources and it is a great deal for Ukraine to open the Japanese market which has a consumption of 25 million tonnes per year," said Yelizaveta Malyshko from UkrAgroConsult agriculture consultancy. "Ukrainian maize has won new markets".
The United States, Canada, Australia and South America are traditional exporters of maize to Japan. A German trader commented : "I think Ukraine is probably doing business as they are undercutting competition on pricing. The Japanese may use Ukraine as an added price lever on its traditional suppliers."
In the drought-hit 2010/11 season Ukraine exported a total of 4.95 million tonnes of maize mostly to Egypt (943,408 tonnes), Iran (634,194 tonnes), Syria (322,582 tonnes), Israel (256,314 tonnes). Ukraine traditionally exports its grain to the Middle East and North Africa, but the former Soviet republic is looking for chances to supply grain to the lucrative Asian market.
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