Wheat export 2019/20 from Ukraine expected at record level
In 2019/20, Ukraine may export a record volume of wheat, 18.2 mln t, which is almost 18% higher from the previous season's indicator, 15.5 mln t, the APK-Inform consultancy reports.
According to the report, the increase in the export potential estimate is promoted by an 11% growth in grain production to 27.3 mln t and by moderate rates of domestic processing.
At the same time, the flour milling segment saw a gradual recovery in production after a sharp decline in 2018/19. Thus, at the end of the first month of 2019/20 large enterprises of Ukraine produced 127.7 thou. t of flour, 5% higher from the corresponding period of the previous season. This growth is due, in particular, to the intensification of export supplies, the volume of which in July 2019 exceeded by 50% the relevant indicator of the 2018/19 season, 25.3 thou. t vs. 16.8 thou. t.
"If the current trends continue, the estimate for food consumption of wheat will be increased, thus forming an additional domestic demand for food grain. With the September adjustments to the forecast balances, the index of food consumption of wheat in 2019/20 is forecasted at the level of 3.1 mln t, 1.5% higher from the record low of 2018/19," analysts note.
As of September 23rd, 2019, harvesting of grain and leguminous crops in Ukraine was conducted on the area of 10.8 mln ha or 70% of the total. The crop reached 43.3 mln t using the average yield of 4.03 t/ha (2018: 3.6 t/ha).