Difficult weather conditions are having a negative impact on future corn and sunflower harvests in Ukraine. This could be a repeat of 2020, when drought reduced the yield of these crops by 35%. This was reported by analysts of the agricultural cooperative PUSK, created within the framework of the All-Ukrainian Agrarian Council.
«Reserves of productive moisture are extremely low. Despite the fact that the temperature is projected to decrease, the lack of rainfall will negatively affect the development of these crops. Now, in particular, the corn is beginning to bloom, laying the foundation for the crop. And without rain, the situation could be quite critical. Unfortunately, there could be a repeat of 2020 and a reduction in yields of 30-35%. This fact is causing some importers to stockpile corn while it is cheap", – the analyst warned.
Today, the world's demand for corn has increased as the Romanian corn has been scorched by the heat. From 15 to 30% of the sown areas of corn in Romania died.
«Just to understand, last Monday the Romanian maize was worth 190-192 dollars a tonne on FOB, and yesterday it was already worth 200-202 dollars, that is, it has increased by 10 dollars a week. Ukrainian corn on the export market went up by 3-4 dollars. Egypt begins to contract corn — here Ukrainian producers can compete with American and Argentine corn. Yesterday, the price was $170 to $172 per ton, and if the weather risks persist, in August we can see a price of $180 for corn of the old harvest», – explained the PUSK.
Sales in the sunflower market are slow. This crop has low liquidity by the end of the season. According to the new harvest pricing policy, the September-October guide prices are US$410-430 per ton (including VAT). The most likely is an increase in the price of sunflower, although analysts do not yet recommend entering into futures contracts, as the situation remains uncertain.
Source: Agravery.com
