April 28, 2008

East EU grain crops recover on rainy season

East EU's grain crops have sharply recovered after a prolonged drought from last season as spring rains rolled in, analysts said.

Observers said the improvement on the EU weather will fuel expectations of hefty exports, mostly from the key Black Sea region.

Ukraine, Romania and Bulgaria, on the western shore of the Black Sea, are also projected to reap up to 70 percent of crop increases.

Ukraine officials see the grain harvest climbing to 38-40 million tonnes from 29.3 million a year before, with around 90 percent of winter grains looking healthy.

UkrAgroConsult consultancy said that winter crop conditions with sufficient soil moisture are mostly good and satisfactory in Ukraine.

Wheat exports are expected at at 6.6 million tonnes in 2008/09 against a potential 1.4 million in 2007/08, with the Black Sea state keeping its traditional partners in North Africa and the Middle East, the UkrAgroConsult said.

Meanwhile, Hungary, Romania's neighbour to the west, may witness the steepest crop rise in the region, due to ample rainfall, Farm Minister Jozsef Graf said.