“Abnormal Winter and Prices”: How the Weather Will Affect the Dollar in Ukraine

Ukraine is facing crop problems due to the abnormally warm and snowless winter. 

“Agro-Center” tells more about it.

Commentary: “At the beginning of March, there should be 1 meter of moisture in the ground. And there is only 22-23 cm. A good rain can increase the level up to 30 centimeters, but it is still only a third of what is required,” said Vasily Drach, a farmer from the Cherkasy region.

Such weather conditions will greatly affect the country’s economy. 

Commentary: “Our domestic market depends on the world market. In any case, we will harvest enough to meet our needs, as it is only about 8 million tons. Poor crops mean less export, which leads to less currency inflow. Therefore, we can expect a weakening of the hryvnia. Will this affect prices for bread and grains? We have world market prices, so if Ukraine harvests less grain, world market prices will go up,” said Yaroslav Levitsky, an agrarian market analyst.

Details: Farmers complain that winter wheat and barley are already dying. According to the most optimistic forecasts, Ukraine may lose a third of all crops.

Such weather can cause serious crop problems. Some farmers fear they may not get even a third of what they used to harvest.

At the moment, drought is only one of the possible forecasts. The most pessimistic one. Time will tell whether the forecast is right, however, it is already estimated that crops will be reduced by 10 million tons. Such consequences as the hryvnia falling, the dollar rising and prices going up are possible.

Source: Investor-UA