Ukraine removes grain export quotas

Ukraine, one of the world’s leading grain exporters, removed in May 2011 grain export quotas that have helped drive up global food prices and hit domestic agribusinesses hard.

The decision would ease concerns in the wheat market about supplies in the second half of 2011 as western Europe and the southern US, two important producing regions, suffered a drought that is likely to reduce output.

European wheat prices for the crop, which would be harvested during the summer of 2011, have surged to €245 a tonne, substantially more than the 2010 prices.

ESO: Background information: France in 'crisis situation' as drought deepens http://www.europeansources.info/record/france-in-crisis-situation-as-drought-deepens/

ESO: Background information: Ukraine considers cap on wheat exports http://www.europeansources.info/record/ukraine-considers-cap-on-wheat-exports/

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