Traditionally, representing to your attention a brief overview of the world and Ukrainian agrarian sector news.
Analysts have increased the forecast for the Ukrainian corn harvest to 38 million tons. In 2020, the weather contributes to a high corn harvest: the July rains made up for the moisture reserves under the crops. Analysts raised their estimates of the 2020 crop by 2 million tons to 38 million tons (36 million tons – the previous estimate). USDA experts predict an increase in the corn harvest in Ukraine in 2020/21 MY to 39.5 million tons against 39 million tons in the July report, despite reports of “burning fields”. China will remain one of the main importers of Ukrainian corn, as domestic consumption of corn continues to grow – according to the USDA in 2020/21 MY, growth will amount to 6 million tons, or 2% compared to 2019/20 MY. China’s corn production is expected to contract slightly, raising expectations for a rise in imports.
The European Union once again raised the import duty on corn, sorghum and rye to € 5.48 ($ 6.44) per tonne from August 12, 2020.The EU re-introduced the import duty after it was lifted on July 3, 2020 due to a sharp rising prices for corn on the world market.
Prices for Ukrainian rapeseed rose to the highest level in 5 seasons. Prices for Ukrainian rapeseed since the beginning of the campaign have reached a new maximum of $ 430 per tonne CPT-Odessa. The press service of Agritel says. “This is the highest level achieved in the last 5 seasons,” analysts underlined.
The USDA forecast for wheat production in Ukraine in 2020/21 MY has been increased by 0.5 million tons to 27 million tons compared to the July report (26.5 million tons). This is reported in the USDA report for August. In addition, USDA experts raised the forecast for the wheat harvest in Russia by 1.5 million tons to 78 million tons compared to the June report (76.5 million tons). According to the USDA, the export of wheat from Ukraine and Russia has also increased by 0.5 and 1.5 million tons, respectively, to 18 and 37.5 million tons.At the same time, experts have lowered the forecast for the wheat harvest in the EU by 4 million tons to 135.5 million tons, export – by 1.5 million tons to 25.5 million tons. Analysts increased the ending stocks of grain in Ukraine to 1.63 million tons, in Russia – to 7.98 million tons, in the EU – to 13.56 million tons.
Sunflower seed production in Ukraine in 2020/21 MY is predicted at 17.5 million tons, which is 0.5 million tons more than the previous estimate. This is evidenced by the data of the USDA report for August. According to USDA forecasts, the production of sunflower oil in Ukraine will also increase to 7.31 million tons, sunflower meal – 7.02 million tons.
As part of a joint partnership program, Alfa-Bank Ukraine and the agro-industrial holding Astarta-Kiev offer agricultural producers a loan of up to UAH 7.5 million without deposit. This was reported by the press service of the agro-industrial holding “Astarta-Kiev”. Under the terms of the partnership program, agricultural producers can get a loan from Alfa-Bank of Ukraine under the contract for the supply of grain of the future harvest with Astarta-Kiev. According to the message, the maximum loan amount could be UAH 7.5 million. When registering a loan agreement, no guarantee is required, only a surety from the business owner (agricultural producer).
Export quotations for raw sunflower oil from Ukraine increased for both the old and new crops. Shortage of offers and unfavorable weather support prices. As noted by analysts, most operators are switching to trading in oil from the new crop, but weather conditions raise concerns about the volume and quality of sunflower in the new season. As a result, forecasts for the sunflower harvest in the Black Sea region in 2020 began to decline. In MY 2019/20, the demand for Ukrainian refined sunflower oil, including packaged ones, is growing on the world market. In September-July 2019/20 MY, compared to the corresponding period of 2018/19 MY, there is a significant increase in the export of refined sunflower oil, both in volume and value. Accordingly – 129% (up to 627.4 thousand tons) and 136% (up to $ 555.5 million).
Agroliga company received € 1.215 million in net profit in the first half of 2020, which is 20% lower than € 1.52 million in the same period last year. The company’s revenue amounted to € 42.92 million, which is 2.2 times more than in the first half of 2019 (€ 19.44 million). Gross profit in the reporting period increased 2.2 times to € 5.21 million (I half of 2019 – € 2.37 million), operating – by 54% to € 3.24 million (I half of 2019 – € 2.11 million).
With kind regards, team of GC “Agroliga”.