Traditionally, representing to your attention a brief overview of the world and Ukrainian agrarian sector news.
The Ukrainian sunflower oil price reached maximum again. On the Ukrainian market of raw sunflower oil, as before, there is a shortage of offers, which is the reason for a high level of export quotations on the basis of FOB Chernomorsk. According to traders, the proposals for the supply of sunflower oil in August-September of this year are at the level of $ 760-765 per ton. Export quotes for these products from Ukraine were at the same level in May 2018.
The land moratorium will be lifted by the end of 2019. The Office of the President of Ukraine is negotiating with the World Bank on the choice of a model for opening a land market. The World Bank constantly recommends that the Ukrainian authorities accelerate land reform, while bank experts have previously acted as government consultants on land reform issues. Now they are actively studying this topic and its components for Ukraine. President of Ukraine Vladimir Zelensky said that in 2019 land reform will be carried out in Ukraine, which will create a land market in 2020. On August 23, the Parliament of Ukraine registered the Law on Land Market No10469 “On Amendments to the Land Code of Ukraine (regarding the introduction of a free land market and the abolition of land serfdom)”.
Ukrainian wheat became stronger in price on the world market. Increased competition in the wheat market contributed to a slight decrease in prices for Russian wheat. At the same time, Ukrainian wheat has strengthened slightly due to the demand for wheat with a protein content of 11.5%. The expected high wheat yield in Europe reinforces competition in the wheat market.
For the first time in 4 years, the USDA will reevaluate corn and soybean production in the United States. Due to weather conditions and late sowing this year, the US Department of Agriculture (USDA) will conduct another study in its August report to get a more accurate picture of sown area in 2019, Open Markets reports.
The price of corn on the Chicago Stock Exchange has fallen to a minimum since 2013. Corn fell in price after the USDA announced that American farmers planted more than analysts had expected. It is reported by Bloomberg. As a result, the price fell by 6%, which was a record for the contract and the sharpest drop for the most active futures since April 2013. And the August USDA report put strong pressure on export quotes for Ukrainian new-crop corn. External demand remains low, and the market itself is poorly liquidated, Ukrainian traders say. Experts note that the volatility of the futures market and the uncertainty regarding the future corn crop do not contribute to active trading.
Ukrainian corn displaces American corn in the Chinese market. Against the backdrop of the Beijing and Washington trade war, Ukrainian corn producers began to replace Americans in the PRC market. Previously, the US was the main supplier of corn to China. In 2011-2012. they supplied 5 million tons of corn – almost 100% of Chinese imports.
The net profit of Agroliga in the first half of 2019 increased by 29% to € 1.52 million, compared with the same period last year (€ 1.75 million). The gross profit of the company in the reporting period increased to € 2.37 million, which is € 1.14 million more than in the first half of 2018 (€ 1.24 million). Revenue increased by 63% and amounted to € 19.44 million, compared with the same period in 2018 (€ 11.91 million). Operating profit amounted to € 2.11 million (€ 0.93 million in the first half of 2018). According to the results of the first half of the year, the cost of sales of the company increased by 60% to € 17.08 million (€ 10.68 million in the same period in 2018).
With kind regards, team of GC “Agroliga”.