Favorable level of stocks stabilize grains, oilseeds markets

NOVI SAD - The grains and oilseeds markets are stable thanks to favorable level of stocks of these basic agricultural products, so their prices are expected to be relatively stable this year, said Zarko Galetin, director of the Novi Sad Commodity Exchange.

The total domestic quantities of these commodities make it highly unlikely for the prices on the market to soar, and therefore it is expected that the next year will be relatively stable, despite the crises in Ukraine and on the world market, in which Ukraine and Russia participate as large grains producers, Galetin told Tanjug.

This crisis could somewhat harm the predictability of price trends because Russia and Ukraine do not act in accordance with the principles of the World Trade Organization, but rather take protection measures, Galetin said.

Russia, as the fourth world exporter of wheat with export potential of as much as 23 million tons annually, announced that it will stop to export wheat, and if this happens, completely or partially, it could have a significant impact on the markets across the world and the overall world market, he said.

Galetin expects that this year will see a stable production of the most important field crops in Serbia, primarily corn, soybean, sunflower and wheat, although in the fall of 2014, the bread wheat was sown on a somewhat smaller area than in the previous year.

Commenting on changes in the government's policy with regards to subsidies to agriculture, Galetin said that the cut in subsidies will hit producers with more than 20 hectares of agricultural land.

Agricultural producers with large areas of land have a greater financial capacity and generally use good agro techniques, Galetin said, adding that in the manner they...