Traditionally, representing to your attention a brief overview of the world and Ukrainian agrarian sector news.
Based on the results of 2019, Ukraine increased sunflower export by 40%. In 2019, Ukrainian producers exported 82.25 thousand tons worth $ 34.57 million. According to customs statistics, the main importers of Ukrainian sunflower in 2019 were Turkey, the Netherlands and Finland.
Palm oil price drop pulled along the prices for sunflower oil, which last month fell by $ 75-80 per ton and are at the level of $ 695-700 per ton FOB. Sunflower seed prices are declining in Ukraine. During the past week, prices in port plants lost from 8 to $ 12 per ton. Purchase prices in the central region of Ukraine fell from $ 8 to $ 16 per ton.
Ukraine has increased the production of refined sunflower oil by a third. The production of refined sunflower oil in Ukraine reached 78.09 thousand tons in January 2020, which is 37.6% higher than the result of processing refined sunflower oil of the same period in 2019.
Ukraine can collect 65-70 million tons of grain and leguminous plants in 2020. This was announced by Taras Vysotsky, Deputy Minister of Economic Development, Trade and Agriculture of Ukraine. According to him, the weather conditions are favorable for cereals – a balanced crop forecast in the range of 65-70 million tons in 2020. At the same time, in 2019, Ukrainian farmers threshed 75.2 million tons of grain and leguminous crops from an area of 15.2 million ha with an average yield of 4.95 t / ha.
The profitability level of millet cultivation in agricultural enterprises at the end of 2019 will be 47.2%. This is the highest rate among all major agricultural products. In 2018, it was marked by a high level of profitability (34.7%), but inferior to hops (60.9%). In 2019, hop-growing slightly lost its position in terms of production efficiency (42.7%), losing leadership not only to millet, but also to rye (43.2%).
From the beginning of the 2019/20 marketing year, as of February 12, 2020, grain exports from Ukraine amounted to 37.93 million tons. Grain export this season is 8.2 million tons higher than the result for the same period of the previous marketing year.
On world exchanges prices for agricultural products, except corn, have fallen. Concerns about the effect of coronavirus on consumption levels, and especially on trade between Asia and the United States, hit the current quotes very strongly. The Chicago Stock Exchange saw a sharp drop in prices for all products, the main reason for which was the situation with the spread of coronavirus. This was reported by the press service of Agritel. As specified in the material, wheat prices were marked by a serious decline, accompanied by the prospect of a plentiful harvest in the Black Sea region. Agricultural prices also fell on the European market amid concerns about the spread of coronavirus. Operators fear a fall in commodity flows, and, first of all, a decrease in global demand in the event of an increase in the number of countries affected by the virus. Export quotes for crude sunflower oil from Ukraine on the basis of FOB Chornomorsk fell to the level of the beginning of the 2019/20 season against the background of the further spread of coronavirus in the world and fears of a sharp drop in demand. Exporters note a lack of external demand not only for spot deliveries in March-April, but also for longer periods.
Agricultural holdings had to change the technology for growing winter crops due to abnormal weather. Weather conditions are making adjustments to the technology of growing winter crops. Ukrainian farmers adapt their plans to get the maximum yield. Many have already decided to postpone fertilizing and start spring sowing ahead of traditional deadlines. In the Odessa region, farmers have already begun sowing spring barley. Climatic changes in Ukraine are forcing to change the production process and make adjustments faster than it was a few years ago.
With kind regards, team of GC “Agroliga”.