Traditionally, representing to your attention a brief overview of the world and Ukrainian agrarian sector news.
World prices for sunflower oil fell due to the rationing of demand. The average value of the FAO Vegetable Oil Price Index in April was 162 points, which is 2.9 points (1.8%) higher than in March.
Corn production in Ukraine will grow by 7.2 million tons or 24% in 2021/22 MY to 37.5 million tons against 30.3 million tons forecasted in 2020/21 MY. This is evidenced by the data of the USDA report for May. Against the background of the projected increase in the corn harvest in 2021, experts also raised the forecast for grain exports from Ukraine to 30.5 million tons, which is 7.5 million tons or 33% more than the expected supply volumes in 2020/21 MY (23 million tons). According to the report, ending stocks of corn in Ukraine in 2021/22 MY are projected at the level of 1.11 million tons (+0.21 million tons or 24%) against 0.89 million tons according to forecasts in 2020/21 MY. World corn production is expected at 1,189.85 million tons, which is 61.39 million tons (1,128.46 million tons) higher than the estimate in 2020/21 MY, exports – 197.47 million tons (+10.64 million tons ).
USDA experts predict an increase in the wheat harvest in 2021/22 MY in Ukraine by 14.08% to 29 million tons (25.42 million tons in 2020/21 MY according to experts’ production forecasts). According to the report, the forecast for wheat exports from Ukraine in 2021/22 MY was increased to 20 million tons, which is 3 million tons more than the projected volume in 2020/21 MY (17 million tons). In turn, the forecast of the ending stocks of grain in Ukraine in 2021/22 MY increased by 6.9% to 1.55 million tons against 1.45 projected in 2020/21 MY. On May 12, July wheat on all three US stock exchanges finished trading in the “red zone” under pressure from the forecasts of the May USDA report, as well as the weakening of the “locomotive” of recent days – the neighboring corn market.
According to the USDA report, the sunflower harvest in Ukraine in 2021/22 MY is expected at 16.7 million tons, which is 2.6 million tons or 18% higher than the harvest in 2020/21 MY. Accordingly, analysts predict an 18% increase in sunflower oil production in Ukraine to 6.99 million tons (2020/21 MY – 5.934 million tons). Sunflower meal production is expected to reach 6.71 million tons (1 million tons compared to 2020/21 MY). USDA experts raised their estimate of the global sunflower harvest to 54.92 million tons in the new season, which is 5.22 million tons more than 2020/21 MY (49.69 million tons). At the same time, the global production of sunflower meal is expected at 22.56 million tons against 20.59 million tons in 2020/21 MY. The volume of world production of sunflower oil is projected at 21.15 million tons, which is 1.96 million tons more than expected in 2020/21 MY (19.19 million tons).
On May 24, President of Ukraine Volodymyr Zelenskyy signed a law on land decentralization. “For the full completion of decentralization, I signed a decree on the transfer of agricultural land from state to communal ownership … This is Law No. 2195, which introduces electronic auctions for the purchase and sale of land, and Law No. 2194, which fundamentally changes the land management of our state and which is called land The Constitution, ”commented Volodymyr Zelenskyy.
It is planned to create an anti-raider commission in the Ministry of Agrarian Policy to protect farmers after the opening of the land market, which will take place on July 1 of this year. The ministry already has a draft order on the creation of a commission, which is now being finalized. In addition, the ministry plans to open a hotline for calls from farmers.
Agroliga received € 3.36 million in net profit in the first quarter of 2021, compared to € 0.869 million in net loss in the same period last year. According to the report, the company’s revenue was € 23.38 million, which is 13% more than in the first quarter of 2020 (€ 20.68 million). Gross profit in the reporting period increased by 11% to € 3.21 million (Q1 2020 – € 2.89 million), operating – by 59% to € 3.14 million (Q1 2020 – € 1, 98 million).
With kind regards, team of GC “Agroliga”.