Ukraine crop harvest increases 15% yoy in 2018

Ukrainian farmers have harvested 66.4 mmt in crops (14.9%
more yoy) from 14.3 mln ha (96% of total land sowed) in 2018, while average
yield increased 11.2% yoy to 4.65 t/ha as of Nov. 19, the Agrarian Ministry
reported the same day. The key driver of harvest results was corn, which was
harvested from 4.1 mln ha (or 90% of sowed land). Its yield surged 45.1% yoy to
7.5 t/ha in 2018.

Oilseeds also demonstrated strong harvest results. In
particular, the sunflower yield rose 13.4% yoy to 2.3 t/ha, while the total
harvest increased 16.9% yoy to 13.8 mmt. The soybean yield rose 33.9% yoy to
2.6 t/ha, while total harvest improved 19.4% yoy to 4.3 mmt.

Andriy Perederey: As we
expected, the spring crop harvest improved yoy due to favorable weather
conditions. The strong harvest will have a positive effect on economic growth
and trade balance in 4Q18. Also, the strong oilseed harvest is potentially
positive for vegetable oil producers like Kernel (KER PW) and Astarta (AST PW).