Landkom forward sells about half of its maize harvest
2011-08-23 11:10:57
Landkom International, the Ukrainian producer of agricultural commodities, has agreed its first forward sale and export of maize tis year.
The company is selling 30,000 tonnes of its 2011 maize crop for an average of $278 per tonne, excluding value added tax (VAT).
The group expects the price to be equivalent to $220 per tonne ex-works, excluding VAT, after the deduction of broker commission, export tariffs, and delivery costs to the port.
Landkom has now completed its rapeseed and winter wheat harvest, the results of which are due to be announced next week.
"These sales allow us to lock in good prices for what is expected to be approximately 50% of our total maize harvest," said Vaitaliy Skotsyk, Landkom's chief executive officer.
The group prefers to sell its crops abroad because of higher international prices and the opportunity to hedge foreign exchange risk.
The share price fell five-eights of a penny to 5.125p in the Monday morning trading session.