Serbia Expects 3.2 Million MT Wheat

SOFIA - May 2/02 - STAT -- Serbia is looking at a good start to this year's grain harvest, according to a report compiled by the U.S. agricultural attache here.

Winter wheat production is expected to reach 3.2 million metric tons (MT) from 800,000 hectares. Of the total, farmers will sell 300,000 MT of standard or average quality wheat to the Serbian Republican Commodity Reserves. The balance will be sold commercially on the open market for lower prices.

Current spot prices for MY 01 average quality wheat (HRW#2 or second class) average US $98.50 MT, while new crop prices average US $82 MT, FOB basis Novi Sad.

Winter barley area ended up at 120,000 hectares. Yields are expected to advance to 2,500 kilograms per hectare, resulting in a prospective 300,000 MT harvest. In commenting on the situation, the U.S. agricultural attache here noted dry weather in March and April had no effect on winter barley sown last autumn and the crop has successfully resisted drought until now. Recent rains in Serbia improved soil moisture conditions and no damages were reported.

Planting of commercial corn is proceeding normally in Vojvodina and southern Serbia. The country is expected to plant 1.2 million hectares of corn this year, with recent rainfall generating considerable optimism about early crop development.

Local stocks of corn are running high, due to the large 2001 crop. Domestic demand is strong and some traders report export sales due to regional shortages. Prices are running FOB Novi Sad at US $73.50 MT for quality equal to No 2 yellow commercial corn, based on April averages.

Alfalfa plantings cover 193,000 hectares in Serbia. Yields could approach 17 MT per hectare. However, localized damage to alfalfa fields was reported in north Vojvodina, given very dry weather in early April.

Clover covers about 100,000 hectares in Serbia with yields of 8 MT hectares and total 2001 crop forecast at 800,000 MT. Legumes are planted on 40,000 hectares in north Serbia and new crop forecast is for 1.6 million MT total. Dry weather damage is reported in north Vojvodina in the Banat region.