“Both Ukraine and Russia have built enough export capacity to meet the current pace of exports and are now building to meet future demand.”

Ukraine is also scheduled to begin reforming its railway system this year, and next year Ukraine’s laws will permit the sale of farmland.

Ukraine’s labor outlook may also see improvement, according to Tom McGraw, Tom McGraw Consulting, who sees changes with the younger generation. “The young Ukrainians we work with are catching on in a big hurry. Most have a great work ethic.”

On the marketing front, the Chicago Mercantile Exchange initiated its first futures contract based on Black Sea region grains on June 6. Depending on its success, a Black Sea corn futures contract could follow.

Ukraine’s government is also emphasizing exports to earn foreign currency. Ukrainian President Viktor Yanukovychhas said he wants Ukraine to capture a larger share of export sales to countries like Egypt, the world’s largest wheat importer and a major corn importer.

The result: growing production and growing exports.

Since 2006-2007, when it produced just 250 mbu, Ukraine’s corn output has almost quadrupled to 900 mbu, and buoyed by a big crop, its exports topped 550 mbu, passing Argentina to make Ukraine the world’s second largest corn supplier last year.

Ukrainian officials predict similar corn export levels in 2012-2013. That will come on top of Ukraine’s shipments of feed wheat and feed barley, which also compete with U.S. corn for world markets.