Ukraine's Kernel almost halves area under sunflower in 2024

MOSCOW. May 29 (Interfax) - Ukrainian agricultural holding Kernel has completed its spring sowing campaign, during which it has significantly altered the crop mix for the 2024 harvest, Ukrainian media reported, quoting the company's report for the third quarter of the 2024 financial year from July 2023 to June 2024, filed with the Warsaw Stock Exchange.

Kernel reduced the area under sunflower 43% compared to last year to 68,000 hectares, or 19% of the total area, compared to 33%-36% of the crop mix in 2022-2023.

Kernel sowed more wheat - 93,200 hectares or 26% of the total area, soybeans - 73,400 hectares or 21%, and rapeseeds - 13,700 hectares or 4%. The area under corn remained virtually unchanged at 87,800 hectares or 25% of all areas.

The holding said it expected oilseeds - soybeans, rapeseeds, and sunflower - to be the major profit drivers next season, while the profitability of grains - corn and wheat - remains uncertain.

Winter crops - wheat and rapeseeds - are in satisfactory condition, although hot weather in April-May and subsequent nighttime frosts undermined crops yield potential, it said.

The Farming segment delivered $16 million EBITDA in January-March 2024.

"Notwithstanding higher sales volumes of farming produce in the current season, weak sales prices keep the segment earnings depressed," the report says.

Kernel also said that as of the end of May 2024, it had contracted all the grain of its own 2023 harvest, mitigating the risks associated with commodity price deviations for 2024 financial year segment earnings.