Shares in Astarta jumped 5% back to within range of their record highs after the sugar-to-dairy group revealed a doubling in earnings, and said it was well-placed to exploit firmer crop prices.

The agribusiness giant acknowledged that its wheat yields had fallen even further than it had expected because of the "extraordinary hot weather" in Ukraine, where it has raised its landbank to 185,000 hectares.

The group's winter wheat yield had ended up at 3.4 tonnes per hectare, below the range of 3.5-4.0 tonnes per hectare forecast three weeks ago, and down by one-quarter year on year.

However, the hot weather had improved the quality of the crop, meaning that most of it was of high milling quality, which "will have much better pricing than lower grade grain".

In Europe, Paris milling wheat is trading at a premium of some £30 a tonne over London feed wheat, twice the normal gap, over fears that a rain-delayed harvest in northern European countries will prompt quality downgrades.

'Better prices' 

Meanwhile, prospects for sugar, Astarta's main concern, had been boosted by firm global markets � with "key international agencies not [expecting] any sharp fall in sugar prices this year" � and weaker prospects for Ukraine's own production.

The country 's heatwave had cut prospects for production to 1.7m-1.8m tonnes, from an initial government forecast of 2.1m-2.3m tonnes.

"This� could provide a support for domestic sugar prices during the usual seasonal correction at the time of the production campaign later this year," Astarta said.

The group's own sugar beet, along with other late-harvested crop such as corn, soybeans and sunflowers, had do date been "not that strongly affected" by Ukraine's dry and hot weather.

Sugar jump 

The comments came as the group revealed that earnings for the first six months of the year had more than doubled to E41.0m, on revenues up 85% at E86.0m.

Sugar operations had provided the bulk of the revenue increase, with crop takings rising by 37% to E13.5m, and sales at its dairy operations rising by 74% to E6.95m, helped by higher milk prices and production.

Astarta shares, which touched a record 68.90 zloty in Warsaw last week, touched 66.60 zloty in early deals on Thursday before falling back to close up 3.5% at 65.75 zloty.