Ukraine's 2023 wheat harvest will be 60% feed grain - analysts

MOSCOW. Aug 8 (Interfax) - Ukraine has so far harvested 12.5 million tonnes of wheat with record yields, but due to weather conditions, 60% of the crop will be sold as fodder, Ukrainian media reported, quoting experts from the analytical center of the PUSK agricultural cooperative, set up within the Ukrainian Agri Council (UAC) framework.

"High-protein wheat will be scarce and expensive in the new season [...] The key problem with the new crop is its poor quality: due to weather conditions, the grain has a low protein content," says a statement on the UAC website.

In past years, fodder grains have made up 30% of the harvest and food grains 70%.

Ukraine will receive no more than 40% high-protein wheat in 2023, which will affect prices: "The spread between fodder and high-protein wheat is already $15-$18/tonne, and may exceed $20/tonne."

The UAC believes the current season will be problematic in terms of food grains the world over. "Global demand is just starting to grow, there will be news about quality problems in other regions," it said.

"Those who have high-protein wheat are selling it in Lithuania, Germany, and supply is low at small ports. If last season the markets were in surplus and traders dictated prices, now we are moving towards a deficit model. Farmers are not taking wheat to ports, and prices will rise," the analysts say.