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News of the market of agricultural products

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News of the market of agricultural products of Ukraine and the world

 

News of the market of agricultural products of Ukraine and the world. Last ten news.
Agro Perspectiva
  1. According to the report of the USDA Oilseeds: World Markets and Trade (May 2022), Ukraine rapeseed production is forecast to rise despite the ongoing hostilities. Near-record planted area will drive production of 3.2 million tons. Rapeseed area is concentrated in western Ukraine, away from the hostilities. Yield is forecast to fall below 2021, closer to trend. Historically, close to 90 percent of production is exported as seed, with 90 percent of exports to Europe. Consequently, Ukraine is less reliant on Black Sea port access and presents growers with an attractive option for planting. Crush is projected to rise modestly with increased exports of meal and oil, primarily to Europe.

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  2. According to the report of the USDA Oilseeds: World Markets and Trade (May 2022), marketing year 2021/22 (October to September) Indonesia palm oil exports are lowered 3.0 million tons this month, down to a 12-year low of 25.0 million tons. The forecast is reduced on Indonesia‘s slow export pace through the first 6 months of MY 2021/22 and various palm oil export policies in effect since November 2021. Although the Government of Indonesia implemented a palm oil export ban on April 28, 2022, industry sources expect it to be short-lived and therefore have a limited impact on trade.

    Cumulative shipments from October 2021 to March 2022 declined over 30 percent compared to the same period in MY 2020/21. Exports plunged after export taxes increased in November 2021. This reduced pace is expected to continue into May as Indonesia continues its restrictive export policies.

    A stronger export pace is anticipated for the remainder of the marketing year. The current slow pace of exports is leading to a build-up of supplies that will need to be cleared from storage facilities to accommodate future production.

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  3. Despite all the difficulties caused by the russian military aggression, Astarta prepared all inputs for the spring planting season and completed the full range of field works on its entire land bank within the optimal time.

    - We are convinced that we should not reduce agricultural production during the war, on the contrary, its current scale must be preserved. All available land bank must be cultivated. Therefore, Astarta uses 100% of the land it operates and, after demining, planted even on those lands in the Chernihiv region, which were under temporary occupation until early April, - said Vadym Skrypnyk, the Director for Agricultural Production and Storage, Astarta.

    This year’s final acreage is the following: sugar beets (33kha), corn (38kha), soybeans (40kha), winter wheat (55kha), sunflowers (30kha), winter rapeseeds (6kha), organic crops (2kha), fodder crops (8kha).

    - There have been some changes in this year’s crop structure. We have reduced the area under corn in favour of oilseeds such as sunflower and soybeans. They have a lower yield per hectare than corn, but they can be processed locally in Ukraine, - added Vadym Skrypnyk.

    Currently, the main tasks of the Astarta‘s team are to harvest on its entire land bank and ensure the storage and processing of the crops.

  4. According to the report of the USDA Grain: World Markets and Trade (May 2022), global corn production is forecast down, driven primarily by a cut in Ukraine and the United States, but China and the European Union are expected to have smaller crops as well. However, if realized, Argentina and Brazil will again have record production. Global trade falls in the absence of Ukraine‘s exportable supplies. For global consumption, both feed and non-feed uses are expected to decline very modestly. Ending stocks are forecast down, led by reductions in China and the United States.

    Global wheat production is forecast down with smaller crops in Ukraine, Australia, Morocco, Argentina, the European Union, and China. Overall consumption is down with lower feed and residual use only partially offset by higher Food, Seed, and Industrial (FSI) use. Feed use is expected lower, especially in Australia, China, and the European Union due to smaller domestic crops. Food consumption continues to rise due to population growth. Global ending stocks are forecast down, with smaller carryout in China, India, and most major exporters. Trade is forecast at a record with stronger imports across Africa, Southeast Asia, and
    the Western Hemisphere.

    Global rice production is forecast at a record with larger crops in South and Southeast Asia, including India, Indonesia, Bangladesh, Thailand, and Pakistan. Global consumption is expected to rise, also a record, primarily in India, China, and Sub- Saharan Africa. Global trade is forecast higher with India expected to remain the top exporter, but exports are also up significantly for Thailand and Pakistan. China will be the top importer, driven by record consumption. Global stocks are down to a three-year low as consumption grows faster than production and China continues to auction its large government stockpile.

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  5. EBRD rises to the many challenges faced by its regions

    War to shape Bank‘s activity for years to come, President Renaud-Basso says
    Addresses EBRD‘s 2022 Annual Meeting and Business Forum in Morocco
    Praise for size of Bank‘s green investments and profits in 2021

    The European Bank for Reconstruction and Development (EBRD) is fully mobilised to overcome the challenges created by the war on Ukraine, President Odile Renaud-Basso said today.

    Addressing the Board of Governors‘ Opening Session at the EBRD‘s 2022 Annual Meeting and Business Forum, Ms Renaud-Basso predicted that the war ‘will affect every EBRD region…by increasing energy and food prices, undermining energy and food security, increasing inflation, and weakening growth‘.

    The EBRD‘s response to Russia‘s invasion, which has already included an initial EUR2 billion Resilience and Livelihoods Package to help Ukraine and other countries affected by the war and the deployment of the full range of instruments to counteract its impact, was the right one, she said.

    ‘Time after time, the EBRD has shown its true character during a crisis,‘ she told the event, held this year in Marrakech. ‘And we‘re demonstrating that character again today.‘

    Focusing on the support for Ukraine, President Renaud-Basso said: ‘We‘ve continued to disburse, and have increased our Trade Facilitation Programme limits, in part to boost global food security.

    ‘We‘ve proposed reallocating donor resources to help with the crisis.

    ‘We repurposed existing projects to provide liquidity to clients in Ukraine.

    ‘And with the support of our donors and shareholders, we will be able to do much more to keep the Ukrainian economy afloat, focusing on the private sector, and key infrastructure.‘

    The EBRD support is complementary to funding from other international organisations focusing on budgetary support to Ukraine‘s government.

    Over the entire three decades of its history ‘the events of the last few months have proved the sternest test of the EBRD and our mission to date,‘ the President said.

    This crisis followed another, the coronavirus pandemic, ‘which put the whole world, the Bank, and all our staff, under huge stress and strain,‘ she added.

    Despite such challenges, the EBRD last year invested a record EUR5.4 billion in the green economy, 51 per cent of its 2021 business volume. It also returned record profits of EUR2.5 billion last year.

    The EBRD had previously committed to making a majority of its investments green by 2025 just as, at its last Annual Meeting, it agreed to align all its activities with the goals of the Paris Agreement on limiting climate change by the end of this year.

    Such a commitment was even more urgent as emissions continue to rise and the Bank was making real progress towards hitting the target, the President said.

    She also updated the Bank‘s Governors and others watching the event on the Bank‘s performance on two more strategic priorities for the period 2021-2025: equality of opportunity and gender equality; and the shift to digital.

    And she expressed the intention that the Bank‘s work on Ukraine and its three priorities would ‘not obscure our long-term vision for investing in Sub-Saharan Africa too‘ and the hope that Governors would approve the proposed phased approach, beginning with a decision in principle.

    This year‘s EBRD Annual Meeting and Business Forum, its 31st, is only the second to be held in what the Bank calls the southern and eastern Mediterranean and, because of the pandemic, the first to be held in a physical setting since 2019.

    The 2022 Annual Meeting and Business Forum, which ends tomorrow and features numerous panels all being livestreamed, is the first to be held on the continent of Africa.

    The Bank has invested EUR3.3 billion in Morocco since it began working in the country 10 years ago - and EUR15.8 billion in the wider southern and eastern Mediterranean, which also includes Egypt, Jordan, Lebanon, Tunisia and the West Bank and Gaza.

    The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 38 economies across three continents. The Bank is owned by 71 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well-governed, green, resilient and integrated. Follow us on the web, Facebook, LinkedIn, Instagram, Twitter and YouTube.

  6. World food commodity prices decreased in April after a large jump the previous month, led by modest declines in the prices of vegetable oils and cereals, the Food and Agriculture Organization of the United Nations (FAO) reported today.

    The FAO Food Price Index averaged 158.5 points in April 2022, down 0.8 percent from the all-time high reached in March. The Index, which tracks monthly changes in the international prices of a basket of commonly-traded food commodities, remained 29.8 percent higher than in April 2021.

    The FAO Vegetable Oil Price Index decreased by 5.7 percent in April, shedding almost a third of the increase registered in March, as demand rationing pushed down prices for palm, sunflower and soy oils. Uncertainties about export availabilities out of Indonesia, the world‘s leading palm oil exporter, contained further declines in international prices.

    "The small decrease in the index is a welcome relief, particularly for low-income food-deficit countries, but still food prices remain close to their recent highs, reflecting persistent market tightness and posing a challenge to global food security for the most vulnerable," said FAO Chief Economist Máximo Torero Cullen.

    The FAO Cereal Price Index declined by 0.7 points in April, nudged down by a 3.0 percent decline in world maize prices. International wheat prices, strongly affected by continued blockage of ports in Ukraine and concerns over crop conditions in the United States of America but tempered by larger shipments from India and higher-than-expected exports from the Russian Federation, increased by 0.2 percent. International rice prices increased by 2.3 percent from their March levels, buoyed by strong demand from China and the Near East.

    Meanwhile, the FAO Sugar Price Index increased by 3.3 percent, buoyed by higher ethanol prices and concerns over the slow start of the 2022 harvest in Brazil, the world‘s largest sugar exporter.

    The FAO Meat Price Index increased by 2.2 percent from the previous month, setting a new record high, as prices rose for poultry, big and bovine meat. Poultry meat prices were affected by disruptions to exports from Ukraine and rising avian influenza outbreaks in the Northern hemisphere. By contrast, ovine meat prices averaged marginally lower.

    The FAO Dairy Price Index also was up, by 0.9 percent, on the back of persistent global supply tightness as milk output in Western Europe and Oceania continued to track below their seasonal levels. World butter prices rose the most, influenced by a surge in demand associated with the current shortage of sunflower oil and margarine.

  7. Sales grow to €23.1 billion (plus 19%)
    EBIT before special items of €2.8 billion (plus 21%)
    Outlook from February 25, 2022, maintained for the 2022 business year

    The first quarter of 2022 was characterized by significantly higher energy and raw materials prices as well as supply chain disruptions. "Nevertheless, we had a very good start to the year 2022," said Dr. Martin Brudermüller, Chairman of the Board of Executive Directors of BASF SE, at the company‘s virtual Annual Shareholders‘ Meeting this year. BASF had already released preliminary figures on April 11, 2022.

    Sales rose by €3.7 billion compared with the first quarter of 2021 to €23.1 billion. Sales growth was mainly driven by higher prices, especially in the Chemicals and Materials segments. Positive currency effects in all segments supported sales performance. Slightly lower sales volumes overall had an offsetting effect. Volumes growth in the Agricultural Solutions, Industrial Solutions, Materials, Nutrition & Care and Chemicals segments could not fully offset the decline in volumes in the Surface Technologies segment.

    Income from operations (EBIT) before special items increased by €497 million to €2.8 billion. This was largely attributable to considerable earnings growth in the Chemicals segment. The Industrial Solutions, Materials and Nutrition & Care segments also significantly increased EBIT before special items. The Agricultural Solutions segment recorded slightly higher EBIT before special items. EBIT before special items in the Surface Technologies segment declined considerably, primarily as a result of much weaker demand from the automotive industry.

    EBIT rose by €474 million compared with the first quarter of 2021 to €2.8 billion. Net income amounted to €1.2 billion, compared with €1.7 billion in the prior-year quarter. This is due to impairment charges recognized by Wintershall Dea, which BASF included in net income from shareholdings on a proportional basis (72.7 percent) as a special charge of around €1.1 billion. These impairments were triggered by the war in Ukraine and the related political consequences and concerned, in addition to the Nord Stream 2 loan, assets in Russia and in the gas transportation business.

    Improved operating cash flow in first quarter 2022

    Cash flows from operating activities amounted to minus €290 million, an improvement of €235 million compared with the first quarter of 2021. This increase - despite higher cash tied up in net working capital as a result of higher input costs and the sharp rise in sales - was mainly attributable to the improved operating performance. Free cash flow improved by €88 million to minus €893 million.

    Proposed dividend of €3.40 per share

    The Board of Executive Directors and the Supervisory Board of BASF SE are proposing a dividend of €3.40 per share for the 2021 business year to the Annual Shareholders‘ Meeting taking place today. Assuming a corresponding resolution is adopted by shareholders, BASF will pay out a total of around €3.1 billion on May 4, 2022. "This payment is more than covered by our strong free cash flow of €3.7 billion generated in 2021," said Brudermüller. The ex-dividend date, the day on which the BASF share will trade without the amount of the dividend reflected in the share price, is May 2, 2022.

    BASF Group outlook for 2022

    The global macroeconomic outlook is currently subject to very high uncertainty. In particular, it is impossible to predict the further development of the war in Ukraine and its impact on the prices and availability of energy and raw materials.

    Consequently, BASF is currently maintaining its macroeconomic assumptions for the 2022 business year:

    Growth in gross domestic product: 3.8 percent
    Growth in industrial production: 3.8 percent
    Growth in chemical production: 3.5 percent
    Average euro/dollar exchange rate of $1.15 per euro
    Average annual oil price (Brent crude) of $75 per barrel

    BASF Group‘s sales and earnings forecast for the 2022 business year, as published in the BASF Report 2021, is being maintained:

    Sales of between €74 billion and €77 billion
    EBIT before special items of between €6.6 billion and €7.2 billion
    Return on capital employed (ROCE) of between 11.4 percent and 12.6 percent
    CO2 emissions of between 19.6 million metric tons and 20.6 million metric tons

    The market environment continues to be dominated by an exceptionally high level of uncertainty. Risks may arise from further increases in raw materials prices and new sanctions against Russia, such as a natural gas embargo, or restricted gas supplies from Russia as a result of counter-sanctions. Further risks could arise from the future course of the coronavirus pandemic and longer-lasting or new measures to contain the number of infections, especially in China. Opportunities could arise from continued high margins.

  8. The European Commission has proposed today to suspend for one year import duties on all Ukrainian exports to the European Union. The proposal, which is an unprecedented gesture of support for a country at war, would also see the suspension for one year of all EU anti-dumping and safeguard measures in place on Ukrainian steel exports.

    This far-reaching step is designed to help boost Ukraine’s exports to the EU. It will help alleviate the difficult situation of Ukrainian producers and exporters in the face of Russia’s military invasion.

    European Commission President Ursula von der Leyen, said: "Russia’s unprovoked and unjustified aggression is severely affecting the Ukrainian economy. I have been in discussions with President Zelensky on ways of supporting the economy, beyond the macro-financial assistance and grants we are providing. We both agree on the critical importance of a quick and broad import duty suspension to boost Ukraine’s economy. The step we are taking today responds to this call. It will greatly facilitate the export of Ukrainian industrial and agricultural goods to the EU. We continue to stand by Ukraine in these dire times."

    European Commission Executive Vice-President and Commissioner for Trade Valdis Dombrovskis, said: "The EU has never before delivered such trade liberalisation measures, which are unprecedented in their scale: granting Ukraine zero tariff, zero quota access to the EU market. Since the start of Russia’s aggression, the EU has prioritised the importance of keeping Ukraine’s economy going - which is crucial both to help it win this war and to get back on its feet post-war. These measures will directly help Ukrainian producers and exporters. They will inject confidence into the Ukrainian economy and send a strong signal that the EU will to do whatever it takes to help Ukraine in its hour of need."

    As well as leading to tragic loss of life and mass displacement of innocent civilians of Ukraine, the Russian military aggression is having a devastating impact on Ukraine’s economy and its ability to trade with the rest of the world due to the severe impact on its production capacity and vital export routes. In this difficult context, the EU wants to do as much as possible to help Ukraine to maintain its trade position with the rest of the world and further deepen its trade relations with the EU.

    The EU is also already taking measures on the ground to facilitate overland goods transport to help to get Ukrainian products out into the world. For example, the Commission has already started liberalising the conditions for Ukrainian truck drivers transporting goods between Ukraine and the EU, as well as facilitating transit and the use of EU infrastructure to channel Ukrainian exports towards third countries. These measures will add much-needed flexibility and certainty for Ukrainian producers.

    In 2021, with an ambitious agenda of implementation of the Deep and Comprehensive Free Trade Area (DCFTA), bilateral EU-Ukraine trade had reached its highest level since the entry into force of the DCFTA (more than €52 billion, double the value prior to entry into force of the DCFTA in 2016). With the Russian invasion, the Ukrainian economy and its trade with the world have suffered immensely. Alongside the raft of measures in various fields the EU has taken to support Ukraine, from imposing sanctions on Russia to providing funding for military aid, these trade measures will strengthen the EU’s economic assistance to Ukraine and keep its access to the world open as it faces Russia’s aggression. The last EU-Ukraine Summit (12 October 2021) reflected a number of positive ongoing processes, such as the launch of the Article 29 review on further trade liberalisation.

    The proposal now needs to be considered and agreed by the European Parliament and the Council of the European Union.

  9. As announced on March 3, 2022, BASF has not conducted new business in Russia and Belarus, in light of the war of aggression against Ukraine ordered by the Russian government. BASF strongly condemns the Russian attack on Ukraine and the violence against the civilian population.

    The Board of Executive Directors of BASF SE has now decided to also wind down the company‘s remaining business activities in Russia and Belarus by the beginning of July 2022. Exempt from this decision is business to support food production, as the war risks triggering a global food crisis. This decision is driven by the recent developments of the war and in international law, including the fifth E.U. sanctions package.

    Currently, 684 employees work for BASF in Russia and in Belarus. The company has decided to continue to support its employees in both countries until end of 2022. Detailed plans for an orderly cessation of BASF‘s business in Russia and Belarus are currently being developed. In 2021, Russia and Belarus accounted for around 1 percent of BASF Group‘s total sales.

    At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. Around 111,000 employees in the BASF Group contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio comprises six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF generated sales of €78.6 billion in 2021. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the United States.

  10. Bank raises trade finance to Ukraine by over 40 per cent to provide wartime support and help avoid global food crisis

    EBRD boosts trade finance support for Ukraine by EUR100 million
    Part of increase focuses on food security, helping avert global food crisis
    Support is part of EUR1 billion EBRD activity in Ukraine this year, with donors and partners

    The European Bank for Reconstruction and Development (EBRD) is substantially increasing its trade finance offer for Ukraine to support both general trade and food security as the country grapples with keeping its economy working following its invasion by Russia.

    These measures are part of EUR1 billion of activity that the EBRD intends to undertake this year in Ukraine, in cooperation with donors and other partners.

    The latest increase raises to EUR330 million the envelope for Ukraine under the EBRD‘s Trade Facilitation Programme, a rise of over 40 per cent since the war on Ukraine began on 24 February. Because this is a revolving facility, the facility will support at least €500 million of export and import transactions by Ukrainian companies via ten EBRD partner banks, on an annual basis.

    Part of the increase is focused on food security, helping avert a global food crisis in the autumn and next year, with the EBRD deploying its strength across its agribusiness work. As well as the trade finance increase, a dedicated food security package is currently being finalised.

    The war has disrupted Ukraine‘s entire supply chain, closing import-export routes via the country‘s southern coast and to the north and east by land, and making it difficult for businesses to function normally, for farmers to plan crop financing, and for food retailers to keep shop shelves stocked. Nevertheless, an estimated 60-70 per cent of Ukraine‘s economy is functioning and quickly adjusting to operating in a war, and it is essential to maintain the flow of working capital financing through the banking system.

    The EBRD is helping to provide such financing by adding its investment-grade guarantee to trade finance instruments issued by Ukrainian partner banks under the export-import contracts of their clients.

    To address urgent needs resulting from the war, the EBRD is prioritising five areas within the Ukrainian economy: trade finance, energy security, vital infrastructure, food security (covering provision of liquidity to farmers via banks for the spring sowing campaign as well as to agribusiness companies and food retailers) and providing liquidity to pharmaceutical companies. Investments in all areas will involve risk-sharing with partners.

    The EBRD was swift to condemn the Russian invasion of Ukraine on 24 February and pledged to stand by Ukraine. In early April, the EBRD‘s Board of Governors voted to suspend open-endedly the access of Russia and Belarus to EBRD finance and expertise, and the Bank is closing its offices in Russia and Belarus.

    As well as a resilience package for Ukraine and neighbouring countries affected by the war, the EBRD has pledged to help finance Ukraine‘s reconstruction once conditions permit.

    The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 38 economies across three continents. The Bank is owned by 71 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well-governed, green, resilient and integrated. Follow us on the web, Facebook, LinkedIn, Instagram, Twitter and YouTube.