Tendencies of Ukrainian agrarian market in November 2019.

Agroliga Group brings together a number of dynamically developing medium-sized companies that operate in the agriculture sector of Ukraine



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Traditionally, representing to your attention a brief overview of the world and Ukrainian agrarian sector news.

The price of Ukrainian sunflower oil has strengthened. Due to the growth of vegetable oil markets, the seasonal decline in prices for sunflower oil stopped since September fall by $ 35-40 per ton from the maximum levels of the end of last season. According to the report, prices for domestic sunflower oil rose to $ 710-720 per ton FOB. In Ukraine, the purchase prices for sunflower are gradually growing, although they are limited by the strengthening of the hryvnia to 24.5 UAH / $. Processors offer for sunflower 9 000-9 800 UAH / t with delivery to the plant and 8 500-8 700 UAH / t on ex-farm. And in the 2019/20 MY, Ukraine can produce a record for the last 20 years 6.5 million tons of sunflower oil. In January-September 2019, 3.83 million tons of unrefined sunflower oil were produced in Ukraine. This is evidenced by the data of the State Statistics Service. This indicator exceeds the result of the same period in 2018 by 15.9%. In September, the production of these products reached 461.94 thousand tons, which is 5.1% higher than last September. Already in January-October 2019, Ukraine exported 4.89 million tons of sunflower oil in the amount of $ 3.38 billion.

Black Sea wheat remains expensive in the global market – traders. Export quotes for Black Sea wheat on the basis of FOB deep-sea ports remain at a high level – $ 207-211 per ton. During recent sessions, wheat prices have been growing at leading exchange platforms. Growth drivers are speculators who close short positions (sales) and warm up the market. Ukrainian exporters note the demand for wheat from different buyers, but describe it as unstable. Demand for wheat in Ukraine remains high due to increased liquidity after rising prices on the FOB basis.

In January-September 2019, the export of domestic cereals increased compared to last year’s figures for the corresponding period by almost 44% and reached a record 39.8 million tons. In the nine months of 2019, 13.7 million tons of wheat were sold abroad ($ 2,5 billion), corn – 22.6 million tons ($ 3.7 billion), barley – 3.3 million tons ($ 0.6 billion). The largest buyers of Ukrainian grain in January-September 2019 were still the countries of Africa, Asia and Europe.

As of November 20, 2019, 73 million tons of grain and leguminous crops were threshed in Ukraine with an area of 14.9 million hectares or 98% of the forecast with an average yield of 4.89 tons / ha (in 2018 4.67 tons / ha). According to preliminary calculations and data from the regions, in 2019 the production of grain and leguminous crops in the offset weight will be within 74 million tons, which is 4 million tons more than in 2018. In terms of crops, the expected yield is at the level of:

 – wheat – 28.1 million tons (an increase of 3.5 million tons);

 – corn for grain – 35 million tons (0.8 million less);

 – barley – 8.9 million tons (up 1.6 million tons);

 – sunflower – 14.2 million tons (at the level of the previous year);

 – soybeans – 3.6 million tons (less by 827 thousand tons);

 – rapeseed – 3.2 million tons (up 472 thousand tons).

Over the past 10 years, corn production in Ukraine has grown almost 4 times – from 10 million tons to almost 40 million tons of grain, and this is not the limit. In the coming years, we should expect a further increase as a result of the widespread use of new technological developments. Prices for Ukrainian corn strengthened amid expectations of increased export demand. Export quotes of Ukrainian corn on the basis of FOB deep-sea ports for December delivery strengthened to $ 169-171 per ton, for delivery in January-February – up to $ 170-175 per ton.

According to the results of January-September 2019, the net profit of GC Agroliga reached € 2.72 million, which is 15.2% more than in the same period of 2018 (€ 2.35 million). The company’s revenue in the reporting period increased by 57.3% to almost € 24 million. Agroliga’s gross profit for the reporting period decreased by almost 6% compared to last year to € 3.22 million (€ 3.43 million for 9 months of 2018). According to the report published on our website, the operating company also declined by 5%, to € 2.67 million (€ 2.81 million).

With kind regards, team of GC “Agroliga”.

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