Ukraine To Start Selling Grain At Car Boot Sales

Poor old cash-strapped Ukraine are so desperate for foreign spondoolies that they've recently been shipping grain like it's going out of style.

Having already exported around half of their planned 16.7 MMT of grains in the marketing year, which only started in July, the Ag Ministry have now upped their estimate for exports this MY to 20 MMT.

Ukraine grain consumers must be running around trying to nail their wheat to the floor at the moment, for fear of it being whisked away against their will and put on a boat bound for some foreign land whilst they'd only just popped out for a coffee.

If ever a country was in a mess then Ukraine is surely it. Not so much a disaster waiting to happen, as one happening before your eyes.

They appear not to have noticed that grain production this season is down by almost 20%. They also don't seem to have spotted that at the rate they are consuming and exporting wheat (2.75 MMT in September alone), their Oct 1st wheat stocks of 13 MMT will be gone by the end of February.

Neither do they seem to have spotted that the 2010 winter wheat crop has got off to a terrible start. Some estimates for next season's production are as low as 13-14 MMT (it was 25.9 MMT as recently as 2008), and they consume 12 MMT domestically themselves.

Meanwhile shares in Ukraine farming giant Landkom International slumped to an all-time low of 5.56 pence each yesterday, a fall of over 70% in little more than two months.

Landkom recently abandoned merger plans, instead announcing a plan to raise GBP9.8 million by floating 195 million new ordinary shares at 5 pence each. Landkom said that the money would be used in part to "meet its current financial obligations and ensure that the approximately 23,000 hectares (ha) of crops already planted can be properly maintained to harvest."