October 16, 2014

 

Ukraine faces bleak corn production and export prospects

 

 

Ukraine, a leading corn producer and exporter, will have a leaner harvest and will export less this year, due to harsh weather and the conflict in its eastern regions.

 

Analyst UkrAgroConsult said the country, which lost some planted areas during the fighting in Donetsk and Luhansk-now controlled by pro-Russian separatists-is expected to harvest only 25.9 million tonnes of corn this year compared with last year's record 27.0 million tonnes. As of October 13, it has harvested 11.8 million tonnes.

 

Exports are also seen to drop by 7% to 18.5 million tonnes in the 2014-15 crop season. So far this season, which runs from July to June, Ukraine has exported 841,000 tonnes.

 

The leaner harvest is also due to the excessively hot weather the country experienced late in the summer, UkrAgroConsult said.

 

Compounding Ukraine's woes is the high global corn supply, according to the consultancy. With this condition, it said, significant increases in prices may not happen within the next few years, further lowering Ukraine's corn exports.

 

Ukrainian corn is traded at between US$171 and $176 per tonne FOB Black Sea, UkrAgroConsult said.