The latest
USDA GAIN report for Ukraine has been released, here’s a few of the highlights.
All grains demonstrate higher yields as the result of favourable weather conditions.
Wheat output
for 2016 is 26.6mmt, down only 2.5% on last year despite a drop in winter
crop hectares.
According to industry sources,
60% is milling grade and 40% is feed (I don’t buy that).
Barley
production is 9.7mmt, up 13% on last year.
Corn harvest
is in progress but expected to be up 10% on last year at 26mmt based on
expanded production areas.
Wheat food
consumption as well as feed consumption for all grains has been downscaled
based on shrinking animal numbers, the difficult economic situation, and change
in consumer preferences.
Decreased
domestic consumption and lower ending stocks for grains allowed for higher
exports.
Farmers are currently
planting winter grains and as of October 4 had sown 3.6mha wheat, 119kha of rye
and 181kha of barley 2016.
These
numbers are 3-8% lower compared to the previous year.
Planting
decisions made by farmers in regard to winter grains are being impacted by both
economic factors (low grain prices) and weather conditions (dry soils at end
September, wet soils by mid-October).