There is a possibility of a huge drop in the export of agricultural products from Ukraine.
29-Jul-2024 04:25 PM
Kiev. Due to unfavorable weather conditions, there are indications of a lot of damage to agricultural crops in Ukraine during the current season, due to which there may be a huge decrease in its exportable stock and its shipment may decrease significantly.
During the month of July, severe heat was seen in various parts of Ukraine and due to lack of rain, there are reports of damage to crops in many areas.
Farmers are having to harvest sunflower crop before the scheduled time, due to which there is a possibility of a decline of 25-35 percent in its yield rate.
In Odessa and Dnipro regions, its productivity has fallen from 2.17 tons per hectare last year to just 790 kg per hectare this time.
In view of the weak condition of Ukraine, the US Department of Agriculture has reduced the estimate of global consumption and processing of sunflower to 549 lakh tons and 508 lakh tons respectively.
The condition of Ukraine's neighboring country - Bulgaria is also similar. Although the area under sunflower cultivation increased there, the progress of the crop was badly affected due to extremely dry and hot weather.
The size of the grain is small and the oil content in it is also low. The crushing-processing units there are expecting high and sharp prices of sunflower.
In Russia too, there was less rainfall and more heat. In another neighboring country- Moldova, the maize and sunflower crops are suffering a lot due to adverse weather. Prices continue to rise in Ukraine.
The offer price of sunflower oil for October, November and December shipments to Europe has increased to $ 1085 per tonne, while the bid has also increased to $ 1070 per tonne. The export duty on sunflower oil in Russia will remain at zero percent in August as well.
The offer price of refined sunflower oil from Ukraine is said to be $ 1000 FCA, while the price of bottled oil has increased to $ 1.08-1.10 per liter. Russia may get a good opportunity to increase the export of sunflower oil.