Traditionally, representing to your attention a brief overview of the world and Ukrainian agrarian sector news.
Lets us start with a topic, which is relevant for a long time now. On August 22, decision of the European Court of Human Rights regarding the claim of two individuals against Ukraine came into force. According to this decision, the moratorium on the sale of land recognized as violating human rights. It’s noted, that if the State will not abolish the moratorium in the near future, the ECTHR will award monetary compensation for future claimants, which will entail billion losses for Ukraine.
President of Ukraine Petro Poroshenko was accused of deliberately delaying the signing of soybean and rapeseed amendments and called upon urgently tp sign a bill № 7403-d, which protects farmers against losses of 16 billion UAH. The appeal also indicates that manufactures and other market participants are already suffering from losses, since the unresolved problem is already a year old.
According to USDA experts forecast, this year Ukraine is going to have a record harvest of corn crop at the level of 31 million tons, which is 28,5% higher than the previous season. It is also predicted, that corn export will increase up to 24,5 million tons and will exceed the previous year by 6 million tons. At the same time, the International Grains Council also raised the forecast for world corn production to 1,064 billion tons, which is 12 million tons more than previous forecast.
The most painful topic of August was wheat, the crop which suffered the most from the drought worldwide. USDA has already lowered the forecast of world production of this crop by 4%.As for Ukraine, this year only 8 million tons of food wheat I-V classes will be exported. This approximate annual volume specified in the draft “Memorandum of understanding between Ministry of agrarian policy and the grain market participants”. This volume also includes the export of wheat flous in terms of grain. This was the result of a deficit in the collection of wheat in general and food wheat in particular, bringing Ukrainian millers advocated export quotas to prevent the increase of the bread and bakery products cost. As we wrote before, drought, backlog of collection rates, questioned quality of products and increase in interest of importers led to a significant rise in prices to a three-year high.
Export of sunflower oil form Ukraine in 2018-2019 MY may reach 5,75 million tons, which is 11% higher than the previous season. And sunflower meal export to China will reach 1 million tons and will definately make Ukraine a key partner.
As for our company, we are at the stage of making decision about sowing winter rapeseed, actively prepearing for harvesting our key crops, namely sunflower and corn, and looking forward to receive the first liters of new sunflower crop processed at the new plant. Follow our news, September promissed to be saturated!
With kind regards, team of GC “Agroliga”.