09:59 UK, 15th July 2010, by Agrimoney.com
Ukraine confirms weaker hopes for grain harvest

Ukraine's government has confirmed reports of weaker hopes for its grains crop, slicing its harvest forecast by a further 3m tonnes, as producers also lowered their sights.

The farm ministry, making its second downward crop revision in three weeks, cut its harvest estimate to 42m tonnes from 45m-45.5m tonnes.

The Ukrainian Grain Confederation, or UAK, an association of producers and traders, also unveiled a cut in its forecast, of 2m-3m tonnes to 44m-45m tonnes.

The downgrade is the latest in a series for major grain producers, with European Union hopes also cut on Thursday by high-profile analysis group Strategie Grains

However, unlike its neighbours, Kazakhstan and Russia, Ukraine has suffered from too much rain rather than too little, affecting grain quality as well as yields.

'Serious losses'

Gluten, the protein key to food uses of wheat such as breadmaking, was "being washed out even as you look", the ministry said.

The comments follow a warning from Viktor Slauta, the deputy prime minister with agricultural oversight, who told a government meeting that Crimea, in the south of Ukraine, had suffered 22 successive days of rain.

"The situation is very difficult," he said.

The UAK said that while yields appeared healthy, farmers were "facing serious losses during the harvesting".

"We have enough reason to reduce the forecast," the confederation said.

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