Dear Charlie;
Interesting article... how much will Canadian productin decrease... 15%?
WASHINGTON, D.C., U.S. — Grain and pulse production is expected to decrease by more than 20% in 2009 compared to the record crop of 2008, the Foreign Agricultural Service (FAS) of the U.S. Department of Agriculture.
Global financial turmoil hit the Ukrainian economy and its banking sector hard, and the following credit crunch may result in decreased input application, possibly lowering crop yields and grain quality, FAS said. The bumper crop and substantial carryover stocks resulted in record export sales in the 2008-2009 marketing year, promoting Ukraine to the list of top grain exporters. Grain exports are expected to slow down in the 2009-2010 marketing year, but to remain on above average levels, particularly due to increased carryover stocks, according to FAS.
Production of grains and pulses (wheat, barley, corn, rye, oats and peas) is expected to decline by over 20% in 2009, according to FAS. Weather conditions have been relatively favorable, but lower credit availability could result in a decrease in input application, leading to lower grain yields and possibly impacting grain quality, FAS said. FAS said it expects total grain production to remain at above average levels. Grain exports are expected to decrease to some extent, while relatively large carryover stocks will help Ukraine to stay a large grain supplier in the 2009-2010 season.
Ukraine harvested a record high grain and pulse crop in the 2008-2009 marketing year. According to State Statistical Committee data, total grain and pulse production increased by 82% year over year and totaled 53.3 million tonnes in 2008, benefiting from increases in both harvested area (by 14.4% to 15.4 million hectare) and yields (by 59.2% to 3.5 tonnes per hectare), particularly due to exceptionally favorable weather conditions. FAS said Ukrainian agricultural producers benefited from record-high prices for agricultural commodities in 2007 and early 2008, allowing them to increase input application for the 2008-2009 harvest.
FAS said attributed declining domestic prices to a record grain crop combined with large carryover stocks increased an export surplus of wheat, barley and corn. In spite of a relatively high pace of export sales, the bumper Ukrainian grain supply resulted in a plunge in domestic grain prices, especially for feed grains, FAS said. Increased competitiveness globally and regionally, renewal of protectionism in some foreign markets (E.U. import duties, lower import subsidies in Saudi Arabia etc) and higher risks caused by the global financial turmoil adversely affected Ukraine’s grain trade, but a recent 35% devaluation of local currency has had a positive impact on grain export sales, according to FAS."
Interesting article... how much will Canadian productin decrease... 15%?
WASHINGTON, D.C., U.S. — Grain and pulse production is expected to decrease by more than 20% in 2009 compared to the record crop of 2008, the Foreign Agricultural Service (FAS) of the U.S. Department of Agriculture.
Global financial turmoil hit the Ukrainian economy and its banking sector hard, and the following credit crunch may result in decreased input application, possibly lowering crop yields and grain quality, FAS said. The bumper crop and substantial carryover stocks resulted in record export sales in the 2008-2009 marketing year, promoting Ukraine to the list of top grain exporters. Grain exports are expected to slow down in the 2009-2010 marketing year, but to remain on above average levels, particularly due to increased carryover stocks, according to FAS.
Production of grains and pulses (wheat, barley, corn, rye, oats and peas) is expected to decline by over 20% in 2009, according to FAS. Weather conditions have been relatively favorable, but lower credit availability could result in a decrease in input application, leading to lower grain yields and possibly impacting grain quality, FAS said. FAS said it expects total grain production to remain at above average levels. Grain exports are expected to decrease to some extent, while relatively large carryover stocks will help Ukraine to stay a large grain supplier in the 2009-2010 season.
Ukraine harvested a record high grain and pulse crop in the 2008-2009 marketing year. According to State Statistical Committee data, total grain and pulse production increased by 82% year over year and totaled 53.3 million tonnes in 2008, benefiting from increases in both harvested area (by 14.4% to 15.4 million hectare) and yields (by 59.2% to 3.5 tonnes per hectare), particularly due to exceptionally favorable weather conditions. FAS said Ukrainian agricultural producers benefited from record-high prices for agricultural commodities in 2007 and early 2008, allowing them to increase input application for the 2008-2009 harvest.
FAS said attributed declining domestic prices to a record grain crop combined with large carryover stocks increased an export surplus of wheat, barley and corn. In spite of a relatively high pace of export sales, the bumper Ukrainian grain supply resulted in a plunge in domestic grain prices, especially for feed grains, FAS said. Increased competitiveness globally and regionally, renewal of protectionism in some foreign markets (E.U. import duties, lower import subsidies in Saudi Arabia etc) and higher risks caused by the global financial turmoil adversely affected Ukraine’s grain trade, but a recent 35% devaluation of local currency has had a positive impact on grain export sales, according to FAS."
Comment