1. Higher input costs to hit Ukraine grain production – attache
Fewer acres and less fertilizer use will reduce Ukraine's production of barley, corn, and wheat this year, with wheat production likely down 4%, USDA's attache said this week.
Corn production should drop 7% and barley 12%.
"An increase in input costs for agricultural producers, that is already occurring, is expected to translate into lower use or application of cheaper (which in most cases means less effective) fertilizer as well as plant protection inputs and seeds," the report said.
Ukraine's wheat exports should slip to 11 million metric tons from the previous crop's 11.5 million while corn exports may hold near unchanged at 18 million.
2. Australia farm production value seen up 3.4% this year
Higher prices for beef, lamb, sheep and wool should raise the value of Australia's farm production 3.1% to $53.7 billion this year, the country's Department of Agriculture said.
"The gross value of crop production is forecast to increase in 2015–16 (July-June) by 0.9% to $26.5 billion in 2015–16, reflecting an expected increase in the volume of production," it said.
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The value of farm exports should slip to about $41.8 billion, from 201/2015's $42.4 billion. That decline was based on expected lower livestock production due to herd and flock rebuilding.
"Despite the forecast year-on-year fall, export earnings for farm commodities in 2015–16 are still expected to be around 10% higher than the average of five years to 2014–15 in nominal terms," said Karen Schneider, the Department's executive director.
Argentina soy update >>
Export earnings are expected to increase in 2015–16 for coarse grains by 6%, live sheep 6%, wool 5%, sugar 5%, dairy 2% and lamb 2%.
Export earnings are forecast to decrease for beef and veal by 4%, wheat 5%, cotton 33%, live cattle 4%, and mutton 13%.
Wheat production should be unchanged at 23.6 million metric tons as higher production in western Australia will be offset by declines in the east.
3. Argentina soy harvest at 98.5%, crop raised to 60.8 million MT - Exchange
Argentina's soybean harvest advanced nearly 2% in the latest week to 98.5% complete, the Buenos Aires Grain Exchange said this week and it raised its production estimate to 60.8 million metric tons from its previous 60 million.
Corn harvest was 43% complete and the Exchange kept its production estimate unchanged at 25 million metric tons. The season's first frost was expected this week, which should help reduce moisture content in the grain.
Wheat planting was about 35% finished but the Exchange said some areas of the central and northern crop regions will not be fully planted. Narrow profit margins and dry conditions in the northeast should limit production. The Exchange expects about 9.64 million acres of wheat, down 11.5% from the previous crop.