Traditionally, representing to your attention a brief overview of the world and Ukrainian agrarian sector news.
On February 5, in Kiev, “Strategic of Partnership Agreements” between Ukrzaliznytsia and Deutsche Bahn will be signed, which must improve the efficiency and quality of railway transportation in Ukraine. The Ukrainian government wants to give the national railway operator of Germany Deutsche Bahn AG Ukrzaliznytsia for 10 years. Prime Minister of Ukraine Aleksey Goncharuk expects that with the help of the German national railway operator Deutsche Bahn, AG at Ukrzaliznytsia it will be possible to improve the quality of services.
Sunflower oil content in Ukraine is the highest in 5 seasons. According to the expert, market relations played a positive role in this matter. Some buyers previously introduced a premium for increased oil content and lower prices for the shortage of this indicator.
In 2019, cultivated areas under high oleic sunflower in key oil-producing countries increased by almost 40% per year (by 360 thousand ha) to 1.3 million ha. In Ukraine, the area under high oleic sunflower reached 0.36 million hectares against 0.25 million hectares in 2018 (+ 44%).
Export quotes of Ukrainian corn have grown to the maximum level since the beginning of 2019/20 MY. Active export demand pushes prices up. Ukrainian exporters note increased demand for corn on the foreign market in various lots for spot supply. Analysts note that active export demand has led prices to grow at a fast pace on the basis of the CPT port.
Ukraine may move the USA from the top of corn producers. Long rains in the USA delayed sowing and harvesting, which led to a decrease in the quality of American corn, while Ukraine, due to low prices, increased grain export volumes. The leading world exporter of corn was pushed off the top, except for Ukraine, also Brazil and Argentina.
At the beginning of the February, Ukraine plans to adopt a law on the land market. After the opening of the land market, farmers who do not show their income and do not have a credit history will be able to take loans of UAH 5 million, that is, to purchase land per 100 hectares. According to the draft law on the land market, prepared for the second reading, the minimum price for land is not less than the normative-monetary value (NDO), which now in Ukraine is 27 499 UAH. per 1 ha. This is indicated in the materials of the presentation of the draft law on the land market after taking into account the amendments to the second reading.
Following the stock exchange in Paris, American sites also showed growth amid increased demand from importers and the possible introduction of duties on Russian wheat. In the US, speculators continued to warm up the market amid the global trend of strengthening export prices for wheat and the factor of a limited number of wheat supplies in the country. Even a decrease in weekly wheat exports by 22% to 435 thousand tons could not lower quotes.
Due to the opening of the land market in Ukraine in the fall, we can expect a significant strengthening of the Ukrainian currency. This was announced on Rada TV channel by economic expert Yevgeny Oleinikov. He also added that in March 2020, we can expect growth in the dollar due to the need for the state to repay foreign loans.
In Ukraine, from the beginning of January 2020, there has been an increase in prices for sunflower seeds. So, demand prices at the beginning of the day on January 15 vary mainly in the range of 9 500-10 500 UAH / t CPT-enterprise, which is an average of 500 UAH. higher than at the end of December.
With kind regards, team of GC “Agroliga”.