March 31, 2008

 

Ukraine grains up 36 percent; pulses by 20 percent

 

 

Pulse production (wheat, barley, corn, rye, oats and peas) in Ukraine is expected to augment by 20 percent while a 36 percent jump on grain yields is also projected due to an increase in wheat production according to the US Department of Agriculture.

 

The report also states grain output for exports (wheat, barley and corn) is seen to increase should the Ukrainian government decided to keep on with its existing export quotas for 2008/09. Grain utilisation for food and feed is also expected to be slightly up due to increase in poultry inventories.

 

The USDA said the government may intervene in the 2008/09 market by:
 

    • Purchasing wheat (mainly milling wheat) through the Agrarian Fund;

    • Monitoring and possibly controlling the volume of grain exports during the first quarter of the marketing year  (July-September);

    • Monitoring and regulating grain prices during the beginning of the marketing year, especially for wheat and barley. 

The USDA adds that the government may most likely intervene in the grain market as it is a political crop which will be significant in the upcoming presidential elections in 2009; and lowering grain prices is seen to stabilise meat and bread prices and put downward pressure on inflation.

 

For more of the USDA report, please click here