Ukrainian Grain Prospects Low, Oilseeds High

Sown area and cold temperatures limit Ukraine’s wheat crop, but sunflower production reaches record highs.

After a reduction in sown area, recent cold temperatures have increased concerns over Ukraine’s winter wheat crop, but it will not be another 2002/03, according to the US Department of Agriculture’s Foreign Agriculture Service (USDA-FAS).

At the same time, production of the Ukraine’s three major oilseed crops — sunflower seed, soybeans and canola — reached 5.6 million tons in 2005. This is almost 1.1 million tons over the previous record for production set in 2003.

After a sharp drop in areas planted with winter wheat, Ukraine’s major crop, in Fall 2005 (to be harvested in June/July 2006), low temperatures in January 2006 raised more concerns over the production outlook for 2006.

At this point, winterkill rates for barley and winter wheat in 2005/2006 are expected to exceed the levels recorded during the previous two seasons, but lower than the disastrous 2002/2003 season. During 1978-2005, losses in the Ukraine averaged 14% of the area planted (excluding the worst and the best years).

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Reliable information based on actual testing of winter crop samples taken after January frosts is not yet available. At this point, USDA-FAS in Kiev, Russia expects that winter grain losses in 2006 will be higher than average. After a serious reduction in winter wheat area in Fall 2005, recent low temperatures further reduced production prospects in 2006.