Traditionally, representing to your attention a brief overview of the world and Ukrainian agrarian sector news.
The independent service of agroweather “Meteo Farm”, which has the largest network of meteorological stations in Ukraine, has updated its functionality. For the users service added the “Field Analysis” function, with the help of which it is possible to obtain more necessary data, better analyze climate wavering and more efficiently plan the time of field work.
The USDA raised corn crop forecast in Ukraine in 2018/19 MY by 0.31 million tons (1%) to 35.81 million tons. At the same time, the forecast of world corn production was raised up to 1,110.38 million tons against 1,101.16 million tons in March and 1,076.4 million tons in 2017/18 MY. After the publication of the USDA report, on the balance for March 1 and the acreage in the new season, corn futures in Chicago fell by 4.8% to $ 140.3 tons. July corn futures traded at $ 141.33 tons, December – at $ 148 tons. Corn prices in Ukraine may decline following Chicago, though they remain stable for now. Demand for domestic maize remains high, even though producers are holding back sales in anticipation of rising prices as a result of elections. Prices in the port are $ 161-163 tons.
World prices for wheat continue to fall as well. Wheat futures continued to decline against the backdrop of favorable weather conditions for the new crop in all producing countries, which lowered the prices for the new crop and consumer activity for the old wheat crop. It is reported by GrainTrade. The main reason for the decline remains the growth of wheat crop forecasts in Russia against the backdrop of favorable weather.
Experts reduced the price index for vegetable oils. This is reported in the Food and Agriculture Organization (FAO) report. The fall in the price index by 4.4% for vegetable oil is explained by the decline in prices for palm, soybean and rapeseed oil.
Also, the USDA announced changes in the format of its global reports on the estimates of demand and supply of crops of major crops since May 10. It is reported by Zernotorg.ua. “Beginning with the May report, a column showing global initial stocks, production, imports, domestic use, exports and final stocks after subtracting these figures for China will be included in the tables on global supply and demand for major crops,” the report indicates. It clarifies that in May, the USDA will make changes to its list of “Large exporters” of various crops, adding Russia and Ukraine to this category for the wheat and corn sections.
For Ukraine, the 2018/19 MY might be a record for the export of grain crops – about 49 million tons. To date, more than 39 million tons have been exported. “Ukraine is one of the few countries in the world that have the opportunity to increase crop production, increase export potential and meet global needs,” said Elena Kovaleva, Deputy Minister of Agrarian Policy and Food of Ukraine. According to her, in Ukraine the production of grain over the past five years does not fall below 60 million tons, having reached 70.1 million tons in 2018.
For the period of January-February 2019, exports of agricultural products from Ukraine increased by $ 683 million and amounted to a total of $ 3.5 billion, which is 24.4% more than the same figure in 2018. Leaders among the products that were exported were: corn (share in total agricultural exports – 33.6%), sunflower oil, safflower or cotton (20.13%), wheat and a mixture of wheat and rye (11.84%).
Of course, as for the Ukraine, the main news of April was the election of a new President. And the country, together with foreign investors, held their breath in anticipation of the new trends.
With kind regards, team of GC “Agroliga”.