Representing to your attention a brief overview of the word and Ukrainian agrarian sector news.
At the end of May during the Conference Grain&Maritime Days in Odessa questions have been raised, that could radically change the agrarian sector of Ukraine. In particular, it was about the fact, that soon trade financing of agricultural products might be represented in crypto-currencies. At the moment, one of the agricultural companies is negotiating with crypto-exchanges in order to attract crypto-currencies to the agrarian market of Ukraine. As stated by the initiator of this innovation, use of blockchain technology is able to radically transform the financing of agricultural sector, solve “dollar” problems and lack of funding, as well as provide additional income to farmers, by reducing costs for traders and logistics. Such innovation is able to make the Ukrainian market more transparent, more understandable and, as a result, attract new investors.
Also at the end of the previous month, at USA and European stock exchanges, wheat prices reached 10-month highs and continued to grow. This was due to forecast of dry weather and high temperatures in the main wheat cultivation regions. July futures quotations increased by 3.7% and crossed the psychological milestone of $200 per ton of soft wheat. However, the USDA report, which was released on June 13, and in which the forecast of world wheat production was reduced by 3.07 million tons compared to previous report, somewhat affected the decline in wheat prices. As for Ukraine, in early June, a lot of agrarians predicted the loss of up to 50% of the crop due to the drought. At the same time, the USDA forecast for wheat production in Ukraine remained unchanged. From the point of view of Ministry of agrarian policy and rations, there are no prerequisites for wheat shortage. Despite the drought, June rainfalls stabilized the situation and brought the vast number of areas from risk zone, which allowed preserving harvest forecast at the level of last year. Ukrainian hydro-meteorological center estimated possible losses of wheat yield in 8-10%. Already on June 20, the world stock exchanges once again showed a trend of slight increase in wheat prices. In the June report ARABES experts talk about the growth of world prices for the culture due to the high demand, as well as expected decline in its production in key countries. Analysts predict reduction in production along with an increase in global consumption, with the result that wheat prices will be above the average for the last 10 years.
“Kyivstar” company launched a mobile application for agrarians. Business application, named m-Agri, is intended to provide small farmers with access to valuable industry knowledge, as well as useful information about weather, prices and news. For now, the application is represented by a beta-version of the product, but it’s planned that the platform functionality will develop dynamically.
Ukrainian Association of trade network suppliers appealed to the Antimonopoly Committee with a request to check probable conspiracy on the market of sunflower oil. The director of Association drew public attention to the fact that, despite the prolonged fall in prices on the world market and the expected record harvest, in Ukraine prices slowly, but surely continue to grow. So far the results of this appeal are not covered.
Sunflower production forecast in Ukraine decreased by 2%, however, the final figure still exceeds last year’s by 10%. As for June19, sowing sunflower still proceeded at a record pace. World sunflower seed production is estimated at 50.42 million tons, in particular Ukraine up to 14.5 million tons, which still leaves Ukraine’s right to be called a world leader in this field.
With kind regards, team of GC “Agroliga”.