Sintal harvests early crops: winter wheat yield down 36% y-o-y

Sintal Agriculture (FSE: SNPS GR) completed its early harvest for this year, collecting 145.9 ths mt of crops from 56.1 ths ha of land, which represents 62% of total cultivated area. Yields were generally below management expectations, although corn, sunflower and soybeans are reportedly in a good shape. Sintal plans to start oilseed harvesting in September. Ruslan Patlavskyy: According to the data, Sintal’s winter wheat yield decreased by 36% y-o-y to 3 mt/ha, while barley and peas yields fell by 51% and 31% to 1.8 mt/ha and 1.1 mt/ha, respectively, this year. In our view, the current prices for wheat of UAH 1,493/mt, +61% y-o-y), barley (UAH 1,428/mt, +87% y-o-y), peas (UAH 1,738/mt, +32% y-o-y) and rapeseed (UAH 3,500/mt, +37% y-o-y) mitigate the consequences of the unusually high crop loss rate this year. At the same time, we do not rule out a temporary negative reaction by the market to this news.