Grain Highlights 08.05.2023

Poland wants the European Commission to introduce a ban on the import of Russian agricultural products into the EU.

- The EBITDA indicator for corn producers in Ukraine in 2022 is 44 USD/hectare, which is the lowest level for the last five years. The level was normally above 200 USD/hectare. Even in the dry 2020 it was 264 USD/hectare, and in 2021 – 838 USD/hectare. In 2018 – 2021, the average cost of producing 1 ton of corn was 114 USD, and in 2022 it increased by 63%. The strongest growth in 2022 was realized by the prices of fertilizers, which grew by +154%, and storage costs which rose by +88%.

- Ukraine does not agree with the intentions of Moldova to temporarily stop the import of grain and oil crops from Ukraine. It is emphasized that the production is not delivered to Moldova, but only transited.

- Bulgaria and Ukraine are preparing a joint declaration regarding the mechanisms influencing the sharp price changes in the bilateral trade with sunseed oil.

- According to data from FranceAgriMer in France, 59% of the planned areas for corn have been sown (44% a week earlier, 81% a year earlier, 75% on average for the last five years). 93% of winter wheat crops are in good and excellent condition (94% a week earlier and 89% a year earlier), as well as 88% of the durum wheat crops (89% and 83%), 92% of the winter barley crops (91% and 66 %) and 94% of the spring barley crops  (94% and 88%).

- Over the period of April 21-27, US corn export sales were a net negative -315,600 tons, the lowest level since the beginning of the season. Corn sales of the new crop were 121,000 tonnes. At the same time, 1.69 million tons of grain were exported from ports in the United States (+58% compared to the previous week) and is the highest level since the beginning of the season.

- In April, the authorities in Iran bought about 1 million tons of wheat from local farmers (+32% compared to April 2022). In 2023, purchases are planned to be 8.5 million tons (+13%).