WHEAT CULTIVATION AREAS TO INCREASE ACROSS TURKEY, USDA REPORT SAYS...

United States Department of Agriculture released its annual Turkey USDA Grain and Feed report. The report pointed out the drought of last year and this year there will be an increase in wheat cultivation areas.

According to the USDA report, Turkey received rainfall between November 1-February 29 decreased compared to last year in all regions. Nevertheless, the yield will be determined by the situation of the spring months we are at the beginning.

Wheat production projections for 2020/2021 were announced as 18 million tons with the expected increase in cultivation areas. Some cotton producers shifted to wheat and corn cultivation, causing an increase in cultivation areas.

According to the report, the forecast of barley production and planting area is the same as last year, 7.9 million tons and 3.8 million hectares.

Due to the increase in cultivation areas, it is estimated that corn production will increase to 6.9 million tons and the cultivation area will be 600 thousand hectares.

Paddy cultivation area and production projections for the year 2020/2021 were announced as 97 thousand hectares and 882 thousand tons, respectively. It was stated that the 3% decrease in production compared to last year was due to the decrease in cultivation areas especially in the Thrace region, the reason for this was the decrease in water levels in irrigation dams due to the dry winter.

In the USDA report, it was stated that the goverment will continue its impact on the grain markets and the Turkish Grain Board (TMO), which imported a total of 4 million tons of grain last year, will follow the same policy this period.

Wheat imports are expected to reach a record level of 10.5 million tons in 2019/2020 period, as the state is increasingly importing to balance rising consumption, decreasing production and domestic market prices.

Grain prices will drop due to epidemic, according to USDA...

A drop in all commodity prices is expected due to the COVID-19 pandemic affecting production and foreign trade value chains. Turkey's current expectations in agricultural markets, regarding foreign trade in the summer of 2020 will continue under normal conditions.

In the report, which is noted that the country's export of wheat products has increased in recent years, it is thought that exports will slow down as a result of measures aimed at ensuring the safety of border workers due to coronavirus. Still, the estimates made considering that the negative effects of the pandemic will disappear in the summer, are that exports will be at the level of 6.8 million tons.

Compound feed production will increase by 3% compared to the previous year and will reach 25 million tons. The balanced domestic demand and the increasing population suggest that the increase will continue in the coming years.