Ukraine crops harvest rises 13% yoy as of Nov. 1

Ukrainian farmers harvested 66.7 mmt in crops (13.2%
higher yoy) from 14.1 mln ha (92% of total land sowed) in 2019, while the
average crop yield increased 8.4% yoy to 4.73 t/ha as of Nov. 1, the Agrarian
Ministry reported the same day. Farmers harvested 26.7 mmt of corn (15.6% more
yoy) from 3.9 mln ha (or 78% of sowed land), while the corn yield slid 2.7% yoy
to 6.86 t/ha in 2019.

The harvest results of key oilseed crops diverged. In
particular, the sunflower yield rose 8.9% yoy to 2.44 t/ha and its total
harvest increased 6.1% yoy to 14.0 mmt. The soybean yield decreased 8.7% yoy to
2.32 t/ha, while its total harvest dropped 12.2% yoy to 3.6 mmt.

Andriy Perederey: The increase of total harvest results was driven by strong winter
crops yields, while the summer crop results were driven by an increase of
acreage in corn. The rise in total crop output will have a positive effect on
economic growth and the trade balance in 4Q19. Also, the strong sunflower oil
harvest is potentially positive for vegetable oil producers like Kernel (KER
PW), but the lower soybean harvest could be a negative factor.