The pressure put on Russia by the United Nations (UN), the European Union and the United States to facilitate the departure of millions of tons of cereals and oils from Ukraine could help stabilize food priceswhich after several increases are reaching alarming levels.
The impact of the conflict unleashed by the government of Vladimir Putin on food security has been escalating.
This week the executive director of the UN World Food Program, David Beasley, denounced that not reopening Ukrainian ports “would be a declaration of war on world food security.”
The UN Secretary General, António Guterres, said for his part that he is “in contact” with Russia, Ukraine, Turkey, the United States, the European Union and other key countries to try to reach an agreement that allows two changes, both the outflow of Ukrainian grain through safe corridors from the Black Sea and the unimpeded sales of Russian food and fertilizer.
The possibility of merchandise traffic resuming from Ukraine, together with the projection of a record harvest in Russia, had an impact on the drop in the price of wheat at the end of the week after the records of Tuesday the 17th, when it exceeded US$ 460 per ton.
Indonesia’s decision to re-enable the export of palm oil – in force since April 28 – was another adjustment factor for oils and grains, although soybeans remain above US$ 620 per ton supported by rumors of revival of Chinese demand and the decline of the dollar in Brazil.
EO
soybean harvest
In Uruguay, the soybean harvest enters its final stretch, with 80% of the chacras threshed in the north of the country and about 60% in the south and center. The yields will be between 2,500 and 3,500 kilos per hectare, which will allow a production of 3.2 million tons, almost double the harvest of the 2021 harvest, affected by the drought.
A week without rain will allow the harvest to end in good conditions, with the yellow light on from logistics, particularly due to the conflict that affects Montevideo port operations.
There is an exceptional scenario of prices and yields that come together in a way they haven’t since the 2013/2014 season, and to which is added the production cut in Argentina and Brazil, which makes the local crop more competitive.
EO
While the soybean harvest is finished, the winter crops are definedwhich may have some last-minute area adjustments due to the good margins that allow international prices to be anticipated.
Some inputs, such as fertilizers, have fallen after skyrocketing, but the cost scenario remains unstable and highly volatile.
