Victor Tsvyk harvested 170,000 bushels of wheat this month.
Victor Tsvyk harvested 170,000 bushels of wheat this month. But after Russia exited a wartime deal allowing Ukraine to ship grain to other parts of the world, he has no idea where his bounty will go or how his farm will survive.
Transcript
Victor Tsvyk harvested 170,000 bushels of wheat this month. But after Russia exited a wartime deal allowing Ukraine to ship grain to other parts of the world, he has no idea where his bounty will go or how his farm will survive.
This season, the Ukrainian wheat and corn crop is expected to be 40 percent smaller than the historical average due to a drop in planted acres. While the crop may be smaller, farmers are more concerned about market access.
(Ukrainian) Oleksandr Sivogorlo, agronomist: (translator voice:) "The problem is, first of all, that for us, for the world community, what is grown in Ukraine can be available in those countries that need the grain. We cannot sell our products, as the port infrastructure is partially destroyed and blocked."
Last month, Russia pulled out of the deal brokered by the U.N. and Turkey that provided protection for ships carrying Ukrainian grain through the Black Sea. Concern over the safety of sailors, ships and cargo has forced more grain onto rail cars for transport to other countries. Along with the reductions in shipping capacity are increasing worries about the economic impact of higher shipping costs.
Recent attacks on Ukrainian ports have caused tremors in global grain markets, but the coming harvest in the northern hemisphere has put downward pressure on prices.
(Ukrainian) Oleksandr Sivogorlo, agronomist: (translator voice:) "What Ukraine produces, it consumes only 15-20% internally. 80% of it needs to be exported, but we do not have this opportunity today."
Before the Russian invasion, 80 percent of Ukrainian wheat was exported, primarily to Egypt, India, China and the Middle East.
The spring wheat harvest is complete and planting of winter wheat has already started. As the next crop goes into the ground, current farmers continue to worry the next crop may go no further than the local storage facility.
(Ukrainian) Viktor Tsvyk, Ukrainian farmer: (translator voice:) "What I could feel in this situation? It is a great sorrow for everyone. It is hard for me to talk about this. But we need to experience it."
For Market to Market, I’m Peter Tubbs.
Watch More
The White House adds detail to the new trade deal, while China dodges the details. The drought continues to hammer the south and west. We’ll look at the ticking clock facing the dairy industry. And, commodity market analysis with Sue Martin.
The White House announced this week that President Trump has secured “historic trade deals with China” after his visit last week with President Xi.
This week, the East Coast received an early blast of summer, with highs in Philadelphia reaching into the 90’s with the heatwave expected to continue through the weekend.
Sue Martin talks interest rates, oil, corn, soybeans, hogs, cattle and packing plants in our Market Plus.
Sue Martin discusses the latest trade deal with China along with corn, soybeans, cattle and hogs in our Market Analysis.
Agriculture gets sorted to the side during high-stakes negotiations with China. The yeas have it - E15 is approved in the House but not without some pushback. Revving up fans, drivers, and rural communities on the dirt track. And, commodity market analysis with Naomi Blohm.