Ukraine is likely to follow Russia in extending curbs on exports into next year, Kernel Holding said, as the sunflowers-to-silos group revealed that it still had 700,000 tonnes of grain to be shipped.

The Ukrainian group told investors that there was a "big chance" that Ukraine would extend into 2011 the grain export quotas it introduced last week to stabilise domestic prices.

However, the move would mean extra quota too, of perhaps a further 500,000 tonnes for wheat and barley, which would be distributed among merchants.

Indeed, grain supplies in the domestic market were "still big", with availability of grain for export "that the domestic market will never consume", Kernel said, in an investor conference headed by its chairman Andrey Verevskiy.

Russian influence?

An extension of Ukraine's export curbs, which limited grain exports until the end of 2010 to 2m tonnes of maize, 500,000 tonnes of wheat and 200,000 tonnes of barley, would echo a move by Russia to extend its total ban on shipments.

Russia's prime minister, Vladimir Putin, on Friday said that the ban, imposed after drought fostered a collapse of nearly 40% in the country's grain production, would be extended from the end of this year until July 1.

However, Mr Verevskiy, in answer to a question from an analyst, said he believed there had been no pressure from Moscow on Kiev to impose a Ukrainian ban.

Indeed, in sunflowerseed, of which Ukraine has achieved a record 7.5m-tonne crop, there was "no risk" of market interference by Kiev whether or not Russia imposes a ban on exports, as has been rumoured.

Nearly half way

The comments came as Kernel revealed that it had shipped 600,000 tonnes of grain since its financial year started in July, with contracts to deliver a further 700,000 tonnes before the end of the period.

However, the company said it was confident it would be able successfully to execute all its contracts.

Kernel shares closed up 0.3% at 61.95 zloty in Warsaw.
 

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