Major exporter Ukraine is holding ships carrying a month's grain supply in its ports. Major exporter Ukraine is holding ships carrying a month's grain supply in its ports, traders said on Tuesday, while Russia said it had enough grain to feed itself in a fresh contradiction to previous statements.

Ukraine's Customs Service, reacting to lower harvests after severe weather, has blocked in ports 24 vessels bound for export carrying 379,647 tonnes of grain, mostly wheat, traders' union UZA said in a statement on Tuesday. "According to the latest data, about 20 ships are staying in ports without official explanations. Some of the ships have been in port for more than one and half months," UZA said.

But traders said the real volume of grain held back at ports could be much higher.

"The data provided by UZA is just a tip of the iceberg and this is just 25 percent of the real volume. UZA counts ships of large exporters only, while there are also many ships of small traders in ports," a large Ukrainian trader told Reuters.

The Ukrainian government last month proposed limiting exports of the two key commodities wheat and barley to 2.5 million tonnes between September and December but has put off the final decision until October.

RUSSIAN UNCERTAINTY

Uncertainty over neighbouring Russia's grain stocks, harvest and intentions for its export ban after a devastating drought took another twist on Tuesday when its Agriculture Minister Yelena Skrynnik said Russia had enough grain to feed itself.

She said the country's grain stocks estimates had been revised up to 26 million tonnes from 21.7 million, appearing to contradict President Dimitry Medvedev's comments on Monday that the country would need to look for grain.

The Kremlin and top economic officials have been at pains to reassure the public, already feeling the inflationary effects of the drought and worried about shortages despite a ban on grain exports that will last at least until the end of the year.

"There will be enough grain for food and for the feeding of animals," Interfax news agency quoted Skrynnik as saying.


RUSSIAN TURMOIL

Ukrainian agriculture officials have said that turmoil on the local grain market is a result of Russia's decision to ban exports after its record drought slashed grain crops.

They said foreign traders could accelerate grain exports from Ukraine in a bid to cover an absence of Russian wheat on the world's market and this could leave Ukraine without enough grain to cover local needs.

But Russia, which plans to harvest 60-65 million tonnes of grain in 2010 compared to 97 million in 2009, has not clarified when it would end its export ban.

President Medvedev said on Monday that the Russian ban on grain exports might be lifted earlier than the end of this year, which contradicted Prime Minister Vladimir Putin, who has said it may be extended to late 2011..

Uncertainty about Russia's grain output and the duration of its export ban has sent prices soaring on international grain markets, with key wheat prices hitting two-year highs early in August, although well below 2008 levels when concerns over food shortages sparked riots in a number of countries.

Traders were frustrated over the lack of clear information from Russia.

"They need to agree between themselves on what their stock levels are," a European trader said. "Medvedev's declaration yesterday was ridiculous ... It's not at all coherent: if you import you're not going to export."

Analysts said Egypt, a major buyer of Russian wheat forced to look elsewhere for grain, was unlikely to face 2008-style disorder over food supplies.

"I do not see the situation escalating to public unrest and riots similar to what happened in 2008, because international wheat prices are not rising to 2008 levels," said Magdy Sobhy at the Al Ahram Centre for Political and Strategic Studies.

The UN's Food and Agriculture Organisation Assistant-Director General Hafez Ghanem reiterated FAO comments last week that the world was not headed for a repeat of the 2007/2008 food crisis and said the international community should act together to tackle future volatility.

"Given the importance of food markets in fighting hunger and ensuring economic stability FAO feels that the international community, perhaps under the leadership of the G20, should start looking at ways of dealing with higher volatility," he said. The FAO has called an emergency meeting for Sept. 24 in Rome for governments to confront weaknesses in the global food system and find ways to boost reserves.