According to the recent figures, as of July 29, 2019, Ukraine harvested wheat throughout 80% of the planned areas. At the same time, the average grain yield reached 3.97 t/ha, against 3.43 t/ha on the same date last season, which formed somewhat positive expectations in terms of grain production. APK-Inform analysts forecasted the general harvest of wheat in Ukraine at the level of 27.5 mln tonnes, with the average yield of 4.28 t/ha.
At the same time, market operators reported about the high protein content in new crop wheat at nearly 12.5-12.7%, which provided the certain deficit of feed grains to cover the previously concluded export contracts. The current situation can lead to worsening of selling rates by agrarians, which will support the prices and form the minimum price spread between milling and feed grain varieties, said APK-Inform analyst, Andrei Kupchenko.
According to him, during the harvesting campaign in northern oblasts of the country, where the heterogeneous weather conditions developed during the vegetation period with heavy rainfalls, traders will face some difficulties with the phytosanitary condition of some grain batches. Generally, the qualitative indices of wheat in the reporting regions may also become unequal. In particular, it is expected that at the end of the harvesting campaign, milling wheat will cover the share of nearly 65% in the structure of wheat production, and feed wheat — 35%.
Taking into account the current situation and the seasonal decline of wheat prices, including the influence of the external situation, Ukrainian millers started actively purchasing new crop wheat, which can also support the prices, the analyst added.
You can receive more detailed information about the prospects of the Ukrainian wheat market, by visiting the annual conference "Grain Processors Forum - 2019", to be held in Odessa, on October 3-4.