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KIEV : Former soviet republic of Ukraine expecting a second year of below normal quality in the winter grain harvest comprised 85% of wheat, and 15% of Barley and rye.

Production may shrink more than 25% from last year's bumper harvest because of reduced inputs and dry spring growing conditions.

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A record Wheat harvest of 25.9 million metric tons was gathered last year, but crop quality suffered in a rainy May-June ripening period.

Indeed, more than half the record wheat production was downgraded to feed-quality due to mold, sprouting and other wet-weather problems.

Even so, Ukraine has exported an estimated 12 million metric tons of wheat in the 2008-09 marketing season, establishing itself as major player in global Wheat trade.

By means of comparison, Australia exported 15.5 million metric tons of wheat in 2008-09 and the European Community, 17.5 mmt.

Global leaders were the United States with 24.5 mmt of wheat exports and Canada with 17.5 mmt.

May growing conditions have been much drier this year, suggesting sharply reduced wheat production? Dry growing conditions in spring usually improve the protein content of wheat that is valued for bread making.

However, due to a severe credit crunch in Ukraine farmers reportedly applied fewer fungicides and insecticides. Trader predicts quality will be sub-par for the second year in a row.

The USDA has pegged new-crop Ukraine wheat production at 19 million metric tons on the May Supply-Demand Report and 27% less than 2008. Ukraine wheat exports were set at 6 mmt and 50% of last year.

Dry spring growing conditions are expected to cut wheat production this season.

Courtesy: stormx.com

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