Ukraine. Minimum calculated export prices should not harm the normal functioning of the market

The minimum calculated export prices should not harm the normal functioning of the market, said Mykhailo Sokolov, representative of the Ministry of Agrarian Policy, during the online meeting of Trend&Hedge Club on June 19, ASAP Agri reports.

“We use the 5% percentile method. That is, we take 5% of all contracts that were concluded at the lowest prices and calculate the average price. And the result is further discounted by 10%. Thus, this minimum calculated price will be lower than the weighted average price,” Sokolov said.

He also noted that the number of deals concluded at prices lower than the calculated minimum price is very small.

“Such deals are either a really special case or some kind of abuse,” Sokolov said.

Regarding the issue of forward contracts, he noted that the minimum price at the time of the forward contract conclusion will be applied.

“I hope that there will be no problems, because the calculated prices will be low and the contracts can be easily fulfilled,” added the representative of the Ministry of Agriculture.

The minimum export prices will be calculated from the moment the Cabinet of Ministers of Ukraine approves the relevant resolution.

Tags: Ukraine, export, prices, restrictions