Traditionally, representing to your attention a brief overview of the world and Ukrainian agrarian sector news.
For the first time in the history of Independent Ukraine, a public coalition was established to abolish the moratorium on purchase/sale of agricultural land. The association included representatives of different spheres of activity, whose main demand is lifting of the moratorium from January 1, 2019. They also signed a memorandum open for signing by other organizations and individuals.
In the UK, blochchain monitoring system for the delivery of a certain food product have been tested. According to the test results, the head of the FSA information Department noted that blockchain actually works in the food industry. For the first time this kind of tests were conducted by the State regulator, whereas companies such as Walmart, Alibaba, Cargill have already begun tracking food supply through such systems. Recall, as we wrote before, soon trade financing of agricultural products may be represented in crypto-currencies.
This year Canada for the first time in 40 years will replace the EU in the title of leader in the production of rapeseed. Gross harvest of Canadian canola is projected at the level of 22 million tons. Regarding Ukraine, after the abolition of the export VAT on oilseeds, local farmers will be forced to abandon the cultivation of soybeans due to lower profitability. Recall that the abolition of the export VAT refunds on rapeseed will be enter into force on 1 January 2020 and will not extend agricultural enterprises.
In 2018 in Ukraine significantly increased sown area under high-oleic sunflower. Gross yield will increase by 20-24% compared with the previous year and will be about 400-420 thousand tons. At the same time, according to the “APK-Inform”, gross harvest of sunflower seeds is projected at 14,6 million tons, which is 9% more than last year’s result. While USDA analysts in July report reduced the forecast for Ukraine by 2 million – down to 13,5 million tons.
In July we keenly followed the world’s news regarding wheat. In the middle of the month, wheat quotations decreased for 4% down to 172.5 USD per ton. According to the experts, the pressure on prices continued to favorable weather conditions in the USA, as well as the statement by the US President on possible increase of customs duty by 10% when importing Chinese goods. At the same time, according to the USDA report, world wheat production in 2018/2019 MY will drop by 8,43 million tons. However, there are experts, who predict, that a consequence of the reduced wheat production will increase its value. The closer the season of sale our of our harvest, we follow the world trends more closely.
With kind regards, team of GC “Agroliga”.