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Ukraine shipments increase, prices remain cheaper than U.S. and Brazil

An ag economist says some of Ukraine’s grain exports have increased in recent months.

Allendale chief strategist Rich Nelson says the country is offering prices that are much cheaper than the U.S. and Brazil. “Right now, Ukraine grain can be purchased and shipped out with a discount of anywhere from $10 to roughly $18 per metric ton.”

He tells Brownfield he doesn’t expect it to be much of a market factor. “One small thing we have to point out is their numbers have not been major. These are overages versus last year,” Nelson said. “The bigger issue is the fact that Russia’s crop and confidence has allowed them to be significant exporters at a time when frankly we expected to see year over year declines.”

Nelson says grain shipments out of Ukraine could be pick steam in the short-term as it ramps up its temporary export channel along the Danube River.

AUDIO: Rich Nelson – Allendale Chief Strategist

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