29 September 2016
International surveyor SGS reports that in MY2016/17 the share of 2-grade and 3-grade wheat out of total wheat produced by Ukrainian agrarians increased. 2-grade wheat production is estimated at 18.5% of total (last season – 10.7%), 3-grade – 32.4% (20.9% in Y2015), while the share of feed wheat declined. Average protein rate increased from 11.3% last season to almost 12%. As average price difference between wheat of different grades in Ukraine can be estimated at USD 4-5 per 1 ton, it means that Ukrainian farmers will obtain somewhat higher price for harvested wheat, which (along with growth in yields) will partially offset general decline in realization prices (up to the moment we estimate average wheat prices decline at 10-15% vs. last season).Total wheat production in Ukraine made close to 25.6M tons (-2.6% to previous year, decrease of harvested area by about 10% was almost offset by growth of yields).