How will the grain price be formed in this year
This year, Ukrainian farmers are facing new challenges: an abnormally warm and snowless winter will obviously make its adjustments to sowing and affect yield. In addition, panic is spreading around the world through coronavirus, which is also reflected in the economy.
The market has responded noticeably to the news of the epidemic of price cuts. Coronavirus has a negative impact on prices. Always with this kind of panic, the commodity markets suffer first and foremost: oil, and grain is also behind oil.
Experts of the All-Ukrainian Agrarian Council and heads of agroholdings confirm the fall in prices.
If corn cost about $184 a tonne in January, today its value has dropped by about $10.
Unlike wheat, the impact of the coronavirus on the corn market is much stronger. Active exports continue to support prices, but the corn harvesting campaign in Argentina and Brazil is approaching, which in the face of good weather and good harvests, always leads to a sharp collapse in prices.
As for sunflower, now all world oils have fallen sharply, which will lead to a similar movement in the sunflower market.
The oil market is closely interconnected. Palm oil prices have now fallen by more than 10%. Due to the spread of coronavirus in China and India, there is a threat that procurement by the two largest importers in the world will fall sharply, leading to a fall in prices for all vegetable oils.
Agrarians do not undertake to predict the future price of grain, as agribusiness and grain trade are quite volatile, markets change depending on consumption forecasts, and weather has a huge impact on this.
Warm winter, non-standard challenges. It is clear that the cost of grain will depend on the yield and quality of the product.
The land market was opened on March 31, but for most agrarians, it was the expected decision, which led to the reservation of representatives of the crop business to be ready to buy the land. This, in turn, has led to the minimization of cultivation technology, which will undoubtedly also reduce yields.
However, the positive point is that agribusiness is one of the few sectors of life that continues to live, despite the introduction of quarantine measures in the country.
We hope that the Ukrainian agricultural sector will with dignity pass this difficult stage and be able to adapt to all these changes.
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