Strong precipitation of industrial areas in Argentina does not provide an opportunity to fully collect soy. Recall that the country was badly affected by the drought, which lasted until the end of April this year. In this case, rains can cause soybean yield up to 15% of the damage, taking into account losses from the minimum value of rains and high temperatures. The data are presented by UkrAgroConsult, referring to Reuters.
The assessment of the harvest at the moment, varies from 37 to 38 million tons. It is possible that the precipitation will reduce these figures by one and a half million tons in addition. Please note that last year ended harvesting by 55 million tons of soy.
Fields with the maximum amount of moisture are characterized by diseases of the crops. This will reduce the quality of the crop. In other words, the loss in price will approach 30%.
The minimum yields will also affect the damage to material assets for the export duty, up to 27.5%. To date, the government is trying to establish the economic situation with all its might.
Small indicators of soybean production in Argentina, as well as a significant reduction in purchases by China from the US, did not affect exports. On the contrary, there is an increase of up to 70 million tons.
Secex said that the export of soybeans from Brazil, according to data for April, reached a value of 10.26 million tons. Thus, the record of export of culture over the last month was broken. Recall that the maximum performance was achieved in May last year - 10.96 million tons. As for April 2017 - 10.43 million tons of soybeans, as exports by Brazil.
Soybean producers felt a clear advantage. The fact is that Chinese customers, almost completely switched to purchases from South American suppliers. The reason for this is the tense relationship between China and the United States.
The directions of the common market in relation to oilseeds will be revealed at the Sixth International Conference. Black Sea Oil Trade 2018 will be held on September 20 this year. The participants were invited to the Hilton Hotel (Kiev). The organizer is UkrAgroConsult.
This conference is an actual platform for negotiations and discussion of all trends in the fat and oil sector of Ukraine.