Traditionally, representing to your attention a brief overview of the world and Ukrainian agrarian sector news.
The sunflower oil production will reach a new record. As of April 1, 2020, 10.2 million tons of oilseeds were processed in Ukraine, which is 45.9% of the gross yield. According to the results of 2019/20 MY, the production of sunflower oil is expected to reach a record of 6.6-6.7 million tons, which is 2-3% more than the last season.
Export quotes for sunflower oil from Ukraine rose up to a 3-month high and exceeded $ 730 per ton on the basis of FOB Chernomorsk. In addition, a decrease in the supply of sunflower oil from Russia forced importers to switch to the purchase of Ukrainian oil. As Ukrainian traders note, oil strengthening also provided support. The supply of oil and sunflower seeds is very limited and traders expect further price hikes.
Oil and fat production in Ukraine for September-March:
– unrefined sunflower oil amounted to almost 3 897.6 thousand tons, which is 11.7% higher than last year;
– refined sunflower oil – 536.2 thousand tons (+ 21%);
– soybean oil – 161 thousand tons (+ 3.8%);
– sunflower meal – 3 568 thousand tons (+ 3.2%);
– soybean meal – 662.17 thousand tons (+ 2.3%).
The production of rapeseed oil in July-March amounted to 160.5 thousand tons, which is 27% more than the same period last season.
From the beginning of the 2019/20 marketing year (July 2019 – June 2020) as of May 6, 2020, grain exports from Ukraine reached 51.36 million tons. Grain exports this season is 8.46 million tons or 20% more result for the same period of the last marketing year. In September-April 2019/20 MY, the export of Ukrainian sunflower oil reached a record high of 4.5 million tons (+ 9% compared to last year). At the same time, the export of these products in April of this year became a historic maximum and exceeded 700 thousand tons. Export of vegetable oils from Ukraine in 2020/21 MY will amount to 6.93 million tons, which is 2% higher than this season. This is evidenced by the USDA report for May. Supplies of vegetable oils from Ukraine, according to USDA forecast, will be record-breaking since 2015/16 MY.
USDA experts predict a 4.1% decline in wheat yield in 2020/21MG in Ukraine to 28 million tons (29.17 million tons in 2019/20 MY according to expert production forecasts). According to their own report, corn production in Ukraine will grow by 3.11 million tons in 2020/21 MY to 39 million tons against 35.89 million tons forecast in 2019/20 MY. Wheat prices fell sharply in Chicago after the USDA report, in which world stocks were revised up to 310 million tons in the next season against 295 million tons in the current campaign. Prices in the Ukrainian wheat market followed world prices.
President of Ukraine Vladimir Zelensky supported the abolition of soybean-rapeseed edits and signed bill No.1210. According to representatives of the agro-industrial complex, such a step will avoid losses of more than 10 billion UAH.
May rains did not negatively affect the condition of our winter crops. We sowed 3260 ha of winter wheat and 760 ha of winter rape. Both cultures are constantly monitored and are in excellent condition. The sowing campaign of sunflower and spring barley is coming to an end. We sowed 2600 ha of sunflower and 400 ha of barley.
Agroliga in the first quarter of 2020 received € 0.869 million in net loss, compared with € 1.03 million in net profit in the same period last year. The company’s revenue amounted to € 20.68 million, which is 2.2 times more than in the first quarter of 2019 (€ 9.33 million). Gross profit in the reporting period increased by 2 times to € 2.89 million (Q1 2019 – € 1.42 million), operating – by 54% to € 1.98 million (Q1 2019 – € 1.29 million).
With kind regards, team of GC “Agroliga”.