Ukraine's Farm Ministry has cut its 2005 grain crop forecast slightly to about 37 million tonnes from the previous estimate at 37.4 million, Agriculture Minister Alexander Baranivsky said on Monday. Ukraine harvested a record 41.8 million tonne of grain in 2004. He also said he expected 2005/06-grain exports to fall to 8-10 million tonnes from 10 million in 2004/05. Baranivsky said unfavourable weather this spring was the main reason for the smaller harvest outlook. Last week he also said a possible fall in the 2005 crop, cold weather, high net grain prices and a rise in the value of Ukraine's hryvnia currency could depress exports next season. The central bank marked the hryvnia 3 percent higher last month yielding to the pressure of strong capital inflows from debt investors and exporters.
Ukraine, among the world's leading grain exporters, sold millions of tonnes of its grain every season, taking advantage of the undervalued hryvnia and relatively low net grain prices.
They said large stocks at the end of the 2004/05 season would also support exports.