Ukraine’s export potential to decrease 10-15% in 2017/18 season

18.07.2017

In MY 2017/18, the world’s planted acreage of staple cereals will be smaller than in the last four seasons. The market responds to a decrease in profitability of grain production. According to the latest USDA estimates, the global crop of wheat, corn and barley will fall by 58 MMT to 1913 MMT, but their inventories will be at the third-highest level in the entire history of observations (479 MMT).
 
In 2017/18 season, Ukraine follows the global downward trend in grain planted areas. Cereals have lost roughly 12% of their sown acreage since five years ago. However, this decline was insignificant in the current season. Some growth in wheat was offset by a decrease in barley plantings. The acreage contraction along with rather unfavorable weather conditions will bring the grain crop down to 60.4 MMT against 64.2 MMT last year.
 

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