Currently, Ukrainian spring planting is 500,000 hectares behind 2013’s pace as sowing has dramatically decreased over the past two weeks. The Ukrainian Agribusiness Club warns that the slowdown is a reflection of a tightening credit situation and higher input costs. Fuel costs have increased between 40% – 50% and the price of agrochemicals have risen by a third or more as a result of the socio-political and economic tensions playing out across the country. The slowdown in planting has made the forecast by the agriculture ministry of a total planted area of 8.3 million hectares unrealistic, as planted area will more likely equal 7.5- 7.9 million hectares, or 500,000 -900,000 hectares less than last year. Alternatively, conditions for Russia look positive with 53.3 million hectares to be planted and a total grain crop expected to equal or possibly exceed last year’s at 92 – 95 million tons indicating an exportable surplus of 23 – 25 million tons. As the season progresses weather will be the factor to watch as subsoils across Russia are generally drier than the last two years.
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