Ukraine
After making it through the spring planting season, sometimes with the help of bulletproof vests and helmets, Ukraine’s farmers are facing another challenge – finding enough diesel for the harvest to come.
Russian wheat export prices rose last week following higher wheat prices in Paris, analysts said on Monday, adding that the country’s exports continued to slow down due to seasonal factors.
Ukraine reported a major drop in grain exports, threatening food security for millions worldwide. Grain exports are down 64% so far in May compared to last year, the country’s agriculture ministry said Thursday.
After just three weeks, Indonesia announced it’s lifting its ban on palm oil exports. The move was expected by S&P Global Commodity Insights, saying there was no shortage of palm oil supplies when the ban was announced.
U.S. wheat futures fell sharply on Wednesday following a report about efforts by the United Nations to restore Ukraine grain shipments along with news of potential Russian wheat exports.
When farmers or ranchers in the U.S. face tragedy others in the industry are quick to help. That same mentality, of farmers helping farmers, has reached Ukraine as support rolls in from across the globe.
“Right now, Ukraine’s grain silos are full,” says David Beasley, executive director of the World Food Programme. “At the same time, 44 million people around the world are marching towards starvation.”
Biden says Ukraine has 20 million tons of stored grain awaiting export to various countries. He says lack of port movement coupled with halted planting in Ukraine will ignite a global food crisis unless action is taken.
Diesel prices hit historic highs this week. Due to increased demand and a drop in production, a diesel shortage may be looming as the largest diesel distribution hub in the U.S. is sitting on supplies at a 30-year low.
Rail backlogs in the United States are delaying shipment of grains as well as processed flour and corn syrup, contributing to the national problem of inflation, food and grain companies said at a hearing this week.
What’s included in the White House’s recent Ukraine aid proposal? AgriTalk Host Chip Flory reads between the lines with the Biden administration’s Candace Vahlsing, as industry leaders examine the potential consequences.
Concerns over the world’s supply of grains and oilseeds are prompting the Biden administration to step in and encourage more production. Grain analysts say supplies of grains are tight due to the situation in Ukraine.
The Biden administration is calling on Congress to provide additional resources overseas to “ensure Ukraine’s democracy prevails over Putin’s aggression,” including $500 million dedicated to domestic ag production.
Included in Thursday’s announcement by the Biden administration asking Congress to approve $33B in total aid for Ukraine, is a proposal to increase wheat loan 63% to $5.52 bu.; oilseeds by 40%; rice and pulse 21%.
Ukrainian farmers in the southern region of Zaporizhzhia are determined to get their fields planted this spring.
CBOT soybean oil prices hit a record high after Indonesia announced it will effectively ban palm oil exports as of April 28. With no timeline in place, some question the motive and duration of the announced ban.
Ukraine has planted 2.5 million hectares of spring-planted crops so far this year, 20% of expected area, according to the Ukrainian ag ministry. The country has warned of a potential decline of 20% in 2022 plantings.
Trade disruptions in energy, fertilizer and grains are inevitable. In fact, effects are likely to last for years, possibly even decades.
China made another large buy of U.S. corn. Market analysts say food security concerns are driving the country’s increased appetite for commodities, a trend that could continue to bring China back to the U.S.
The Ukrainian President Volodymyr Zelenskyy is accusing Russia of using hunger as a weapon. He claims Russian forces are deliberately targeting the country’s essential food supplies.
Nearly 4 million acres of CRP expire this year. Secy. Vilsack wrote to National Grain and Feed Association’s Mike Seyfert to share converting CRP is “unfeasible.” However, Vilsack did offer one caveat in his letter.
Before Putin’s forces even breached the Ukraine border, fear and speculation drove commodity prices skyward. Concerns are warranted.
Nick Gordiichuk estimates farmers will plant about 25% of their crops this year. He has no idea when he will get back into fields. Many contain landmines, unexploded rockets and war’s debris.
Ukrainian farmers had sown about 400,000 hectares (988,000 acres) with various spring crops by Thursday, or a tenth more than by the same date last year, despite the Russian invasion, said deputy ag minister.
With the ongoing war in Ukraine, a recent U.S. Farm Report viewer asked about the U.S. and energy independence. John Phipps provides a reality check of the current situation when it comes to crude oil and petroleum.
The Ukranian government announced removal of corn and sunflower oil export license requirements to allow for easier exports, while also hoping the sale of the commodities will provide money for spring planting.
The crisis in Ukraine continues as farmers prepare to plant. And now there are reports planted acres in the country could fall by half this spring as Russia is accused of deliberately targeting Ukrainian agriculture.
As the White House looks to fill the gap of displaced Russian oil, agriculture says E15 is a ready-made answer. Analysis by the Nebraska Ethanol Board shows why bumping blends to E15 could ease prices at the pump.
The fundamentals in both the grain and livestock markets didn’t change this week. So, why did prices see such a volatile trading week? Joe Vaclavik and Don Close break down this week’s market action on U.S. Farm Report.
As the crisis in Ukraine continues and the world debates whether Ukraine will plant crops this year, what is best-case and worst-case scenario for agriculture in Ukraine? U.S. Farm Report analysts weigh the scenarios.