KYIV, UKRAINE — In an effort to provide producers with cash, Ukraine’s state-run Agrarian Fund is buying wheat from the 2022 harvest, Reuters reported.
“Agrarian Fund makes advance payments on the security of the future harvest in the amount of 50% to 70% of the total cost of the contracted grain,” the fund said. It plans to buy milling quality wheat at between $181 and $187 per tonne, depending on quality.
The fund, the country’s largest flour maker and distributor with a market share of 13%, gave no expected volume of grain that it wanted to buy this year, Reuters said.
Traders have estimated that Ukraine’s 2022 wheat harvest could decrease by 45% to 18.2 million because of the invasion by Russia.