Ukraine is facing serious challenges in its agricultural sector due to a drought that threatens winter crops and next year’s wheat harvest. Vast areas of land in the country are too dry for planting, which could shorten the time for sowing winter crops, which make up a significant part of the annual harvest. This is stated in the material of Bloomberg, reports Komersant ukrainskyi
According to the Ukrainian agricultural company HarvEast, due to excessive drought, it is currently impossible to sow winter crops and make the necessary preparations for the campaign. The situation is exacerbated by temperatures that are 7 degrees above normal for September. This further complicates the planting of crops such as wheat and rapeseed. According to Dmitry Skornyakov, CEO of HarvEast, the area under rapeseed is likely to be reduced due to weather conditions, although there is still time to plant wheat and barley.
Overall, the drought and unstable weather conditions may lead to further decline in wheat production, which has already fallen by one third compared to pre-war levels.
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In addition, farmers in many regions of Ukraine are struggling not only with weather conditions, but also with the consequences of the war, such as landmine contamination and labour shortages due to mobilisation.
All of this is happening against the backdrop of a global wheat stock shortage that is at its lowest level in nine years.
While the situation in Ukraine remains critical, Russia is also facing similar challenges. Most of the European part of the country is suffering from a serious drought, and farmers are in no hurry to plant winter crops due to dry soils.
This situation has a direct impact on global grain exchanges. Although Chicago wheat futures are more than 50% below their 2022 peak, there are signs of a supply contraction. Prices recently reached the highest level since June, and the US Department of Agriculture predicts that global stocks will be the lowest in nine years this season.