Most wheat, up to 90%, of new crop in some Ukrainian regions is feed-grade - analysts

MOSCOW. Aug 24 (Interfax) - Wheat from the new crop in Ukraine will be mainly low, non-food grade, Ukrainian media reported, citing grain processors polled by the APK-Inform analytical agency.

"Some processors predict that in some regions of the country the total share of grades 2 and 3 wheat this year will not exceed 10% of total production," the agency said.

"Ukrainian flour millers are increasingly reporting the low quality of the new wheat crop," the report said. They mainly receive offers of grain with a low protein content of up to 11%, while an insignificant part is at 11%-12%, and only a few offers have a protein content of 13%.

Analysts believe that the current situation with regard to wheat quality is providing significant support to prices. This week, most Ukrainian millers continued to gradually increase their purchase prices for milling wheat. Farmers, in turn, are holding back on the sale of quality grain.

As reported, Ukraine has already harvested 27 million tonnes of wheat with record yields, but analysts note that due to weather conditions, 60% of the crop will be sold as fodder, which is twice more than last year's figure (30%).