Tuesday, 26 May 2015

Latest Ukraine spring sowing update

As of yesterday Ukraine's Ministry of Agriculture reported that spring cereals and legumes plantings stand at 6.6mha or 95%.

At the same point last year farmers had planted a million hectares more which will start to put pressure on the Minister of Agricultures assessment that 2015 will be another bumper year now the planting season is coming to a close.

Also don’t forget that inputs have been reduced so what is growing will in all reality likely yield less than last year.  Plus it won’t be long before we start hearing the “D” word* as we move in to the drier summer months.

Anyway for the record the Ministry are reporting corn at 4.1mha or 93% (4.7mha in 2014); sunflowers 4.5mha or 98% (4.4mha in 2014); soya 1.9mha or 97% (1.6mha in 2014); millet 80kha or 82% (88kha in 2014); rice 11.2kha or 98% (10kha in 2014) and not forgetting our ould friend, buckwheat 106kha or 83% (128kha in 2014).

To summarise some key points, sunflowers plantings are about the same as last year, soya is up 16% while corn is down 15%.

If you look at corn output over the last ten years it spikes noticeably during the Yanukovych years as his government pushed corn production to generate cash dollars to spend on old ladies pensions or possibly private zoo’s and gold loaves.

Perhaps we are just seeing a realignment back to where Ukraine’s corn output should be.

*Hint, begins with d ends in rought