14 09 2022 | Farmer discontent engulfs Europe

    14 09 2022 | Farmer discontent engulfs Europe

    The period was relatively static for the prices of the main grain crops at the world commodity exchanges and markets, in the context of the accelerating recession, the statements of the Russian authorities regarding the Black Sea corridor and the unprecedented drought in Europe.


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    Farmers on a strike farmers are protesting against the unregulated import of grain from Ukraine, as well as against part of the requirements under the Green Deal.

    Inflation in Europe –  The ECB raised its key interest rates by 75 basis points in a bid to rein in inflation, raising fears of a negative impact on economic growth.

    More insights in this week’s report for our paid subscribers:

    Look at fertilisers today – what started as an energy crisis has become a fertiliser crisis and will soon become a food crisis. If you still haven't secured the fertilisers you need for the new campaign, you can do it right now on Agriniser.

    Russia blamed Europe for the grain – the president of the Russian Federation, Vladimir Putin, said that grain from Ukraine does not reach the poor countries of the world, but is mainly exported to the EU member states. In response, Zelensky said: "unlike Russia, we are not making a racist division of the world.”  Where is the truth?


    In Bulgaria, grain producers from Dobrich, Vidin, Montana and other cities of the country are protesting against the unregulated import of grain from Ukraine, as well as against part of the requirements under the Green Deal.

    "The protest is organised jointly in several countries, led by the Visegrad Four, supported by other countries such as Romania, Croatia, Moldova. Bulgaria will also take part in this international protest, which is organised in support of agricultural producers throughout the European Union, and was born of the high inflation that occurred in the last year. Bulgarian farmers will also protest against the unregulated import of grain from Ukraine, against the high prices of fuels, fertilisers and preparations,” Zhechko Andrejnski, chairman of the association in Vidin, told BNR.

    "What grain producers from European countries, including in Bulgaria, are doing is the right way. Farmers are protesting in different parts of Europe, for different causes, and I think that this is a normal practice and enjoys my trust," said the official deputy Minister of Agriculture Georgi Sabev

    In the Black Sea region, the issue of grain corridors from Ukraine was put on the table again.


    On the one hand, the agreement signed on July 22 has a validity period of only 120 days, which suggests that it will expire in mid-October.


    On the other hand, the Russian president made serious accusations against the European community, according to which Ukrainian grain is not enough for those in need.

    "We did everything to ensure that Ukrainian grain would be exported. We did it together with Turkey. If we exclude Turkey as an intermediary country, virtually all grain exported from Ukraine is not going to poorer developing countries but to the European Union," Vladimir Putin said, speaking at the forum in Vladivostok.


    "Perhaps we should consider limiting the direction of grain and commercial food exports to Europe. I will certainly consult with Turkish President Mr. Erdogan on this matter," he concluded.

    On the Old Continent, the ECB raised its key interest rates by 75 basis points in an attempt to rein in inflation, raising fears of a negative impact on economic growth.


    In its analysis, the bank expects prices to increase by 8.1% this year, by 5.5% in 2023 and by 2.3% in 2024.

    Fertilisers are also a problem for Europe – the market is becoming increasingly tight with supply risks for the upcoming agricultural year as a result of high gas prices and some industry shutdowns.

    Overseas, at the beginning of the week the dollar continued to retreat against the European currency at a level of 1.0080 per euro. Oil prices recorded another decrease, with a barrel trading at $85.40 on the New York Stock Exchange on Monday morning.

    The US market remained closed on Monday due to the Labor Day weekend. This helped prices recover slightly at the end of the week.

    Data for weekly US wheat exports remained within the expected 477,657 tonnes. Corn exports totaled 518,373 tonnes, and soybeans 495,845 tonnes, both at the lower end of expectations.

    Brazil's national agricultural agency Conab slightly lowered its forecast for the 2021-22 grain and oilseed crop harvest due to dry weather conditions in many areas of the country.


    Production of the 2021-22 harvest is now expected to reach 271.2 million tonnes, which would be a record, surpassing the 257 million tonnes reached in 2019-20.

    From a climate perspective, India's drought has prompted the country to impose a 20% tax on rice exports to cope with declining production.

    World markets

    Futures by the 13th of September

    Wheat
    Data Chicago
    12. 2022

    (per/tonne)
    London
    11. 2022

    (per/tonne)
    Paris
    12. 2022

    (per/tonne)
    07.09
     $ 310,18
     
     
    £ 271,00

     

     € 329,75
     
    08.09
     $ 304,57
     

    £ 268,00
     

     € 324,50
     
    09.09
     $ 319,45
     

     £ 275,25
     

     € 339,25
     
    12.09
     $ 315,50
     

     £ 275,85
     

     € 336,25
     
    13.09
     $ 316,00
     

     £ 277,00
     

     € 337,75
     

    Corn
    Data Chicago
    12. 2022

    (per/tonne)
    Paris
     11. 2022

    (per/tonne)
    07.09
     $ 264,17
     

     € 323,25
     
    08.09
     $ 263,19
     

     € 319,50
     
    09.09
     $269,68
     

     € 329,25
     
    12.09  
    $ 274,02

     

     € 328,75
     
    13.09
     $ 275,00
     

     € 329,50
     

    Source: Euronext, CME, ICE

    The real market in Agriniser

    Trending prices according to negotiations in the platform (available for paid subscription users)

      Feed wheat Corn
    Region Price excl VAT Price excl VAT
    North-West *** bgn/t.. *** bgn/t.
    North Central *** bgn/t. *** bgn/t.
    North-East *** bgn/t. *** bgn/t.
    South-East *** bgn/t. *** bgn/t.
    South Central *** bgn/t. *** bgn/t.
    South-West *** bgn/t. *** bgn/t.

    Cereals Price excl VAT
    Wheat *** bgn/t.
    Sunflower seeds *** bgn/t.
       


    The week at Agriniser   

    The week at the platform passed under the sign of fertilisers. The company is putting a lot of effort in this direction, in an attempt to help agriculture in the country to overcome the difficult situation that the whole of Europe is facing.

    In July, when natural gas prices in Europe were well below today's levels, the International Fertiliser Association estimated that a prolonged conflict between Russia and Ukraine, along with declining fertiliser use due to high costs, could lead to the loss of nearly 2 percent of the world's corn, wheat, rice and soybeans.

    Gas problems have imposed even higher costs on consumers and heavy industry on the continent. But this situation has hit Europe's fertilisers particularly hard. To date, the continent has cut 70 percent of its production capacity due to skyrocketing natural gas prices.

    And as more and more factories are being closed down, the harsh reality of Europe's energy crisis is becoming clear: what started as an energy crisis has turned into a fertiliser crisis and will soon turn into a food crisis.

    According to the association, at the beginning of 2021, one ton of ammonia cost farmers in Western Europe about $250 per tonne. That same fertiliser today sells for about $1,250 a tonne, and predictions are that this isn't the end.

    If you still haven't secured the fertilisers you need for the new campaign, you can do it right now at Agriniser by looking at the current offers. In case of questions, assistance and need for additional information, do not hesitate to contact us at +359 877 729 218

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    Exports from our country in September

    By mid-September, exports from our home ports already exceeded 145,000 tonnes of grain. 40,000 tonnes of wheat from Burgas are being loaded for Tunisia, and another 60,000 tonnes have already left for Algeria.

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