Agricoltura
Kernel became the first company in the history of Ukraine to export 8 million tons of grain
As noted by the record would not have been possible without fruitful cooperation with agriproducers.
said.
In the 2019/2020 МY, not only export volumes, but also export geography changed, first and foremost due to good crop yields in EU countries. However, China has rapidly increased purchase volumes and bought over 1.5 million tons of corn from Kernel, which is 6 times more than in the previous season. Thus, the PRC became the biggest importer for Kernel, surpassing the Netherlands and Spain , which were the main export destinations during previous years. The largest amount of wheat was exported to East Asian countries: supplies to Indonesia and Thailand have increased significantly.
At the same time, Kernel had to overcome a number of challenges. The season has started with relatively high global prices due to unfavorable weather conditions in the Midwest of
the United States . But prices dropped as soon as
Brazil had a second record harvest. In early January, the first phase of the agreement between the
USA and China was signed, which was supposed to put an end to the trade war. However, the market didn't respond to it, showing no reaction at all. COVID-19, which arose in February-March, became the key factor which is still dominating in the world market. Rapid spread of the pandemic and global lockdown caused a recession in the world economy. The decline in people's incomes together with the ethanol crisis in the US have collapsed global grain prices.
According to the projections of the 2020/2021 МY will be no less dynamic. The key trend is food processing in the world. A sharp increase in corn production is expected in the US, and, together with weakened demand for grain, they will put pressure on global prices. Also, demand for biofuels has rapidly decreased. Cheap oil makes bioethanol and biodiesel economically unviable. This is bad news for the agrisector. One more problem from a political perspective is the threat of breaking off the trade agreement between the US and China .
added
By the end of the 2020/2021 MY, Kernel is planning to increase grain export volumes and strengthen its leadership on the market.
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