Coronavirus, which began in China and is now spreading around the world, affects global markets. Disease plus Lunar New Year celebrations in China slowed down export purchases and pushed soybean prices to decline with some collateral weakening in sunflower, wheat and corn.
Recall that most recently, China agreed to increase purchases of sunflower.
Traders fear the outbreak will slow demand and affect China’s commitment to buy large quantities of US agricultural products as part of the first phase of the US-China trade deal.
The homeland of sunflower is considered North America. According to legend, this flower, symbolizing the sun, was presented to the Indians by the gods, so it became sacred to them. In the XVI century, the Spaniards brought him to Europe
In the sunflower market, prices for nearby varieties ended the week with a decrease of 10 cents. Prices for a new crop of Nusun and high oleic sunflower in 2020 fell by 30 cents. On February 3, the USDA Risk Management Agency (RMA) begins the process of determining the price of insurance for sunflower crops in 2020.
Earlier, agricultural analysts reported active sales of sunflower products in Russia.
Producers have the opportunity to select the protection of the crop, income and profit. Final price choices will be announced in early March. At the same time, South America continues to successfully harvest, and weather conditions favor a record amount of soybeans.
Sunflower is the only oilseed crop that pays a premium for oil content above 40%. Considering those that are offered at crushing plants, when the oil content is above 40% in the amount of 2% of the price premium for each 1% of oil content. This allows you to fulfill the contract and get a gross income of 10% higher.
Over the coming week, traders will continue to discuss the impact of coronavirus on US export demand and production prospects in South America.
- Due to excessive wetting of the earth due to heavy rains in some areas of the Kherson region, up to 80-90% of sunflower crops died.
- Over the past 10 years, the area of defeat of sunflower by a top has tripled in Ukraine.
- China agreed to increase purchases of US agricultural products by $ 2 billion.
- Canadian grain exports from licensed enterprises are significantly behind the pace of the previous year, primarily due to a sharp reduction in traffic to China.
- China's largest agricultural drone producer expects to double its sales next year as the government seeks to create larger farms that require more technology.