MARKET EXPECTATIONS

Ukraine's domestic prices of grains have spiked significantly over the last week in Ukraine, local experts said.

Despite the government's optimism about good harvest, markets now expect that prices for Ukrainian wheat, barley and especially corn will remain strong through the current marketing year, which will end on June 30, 2013.

"Droughts in Russia and the United States are pushing global grain prices up, and the price of grain in Ukraine is directly linked to the world market. Given the drought in the East European country, it is safe to say that prices will raise further, stirring up the global market," chief of the Kiev-based research firm "ProAgro" Mykola Vernitsky told Xinhua.

Experts have not yet predicted the margin of grain price hike due to the unknown total harvest, but they said that two main factors will certainly keep prices high.

Analysts noted that Ukraine saw a good harvest and a decline in prices last year. Now the prices are expected to level off due to the low yield. In addition, the higher quality of Ukraine's grain this year will boost the price.

Most local experts agreed that the price of Ukrainian corn will rise by at least 20-25 percent due to the low yield. This will have a huge impact on the world market, as Ukraine is the third largest global corn exporter.

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