Chelmer Foods Seed Market outlook 21.07.2023
Russia's exit from the Ukraine grain deal risks adding to global food inflation. Ukraine is a major exporter of wheat, corn, and sunflower oil, and the war has disrupted its exports. Food prices are already at a record high, and this is worsening the situation.
Russia's actions are a clear attempt to use food as a weapon of war. By blocking grain shipments from Ukraine, Russia is not only causing a humanitarian crisis in Ukraine, but it is also threatening food security around the world.
These actions are also a violation of international law. The United Nations Convention on the Law of the Sea guarantees the right of free passage through international waters. By blockading Ukrainian ports, Russia is violating this right.
The flaxseed market has been quite quiet in recent weeks. There have been no major new offers, and the prices have been relatively stable. However, there are some signs that suppliers are starting to build momentum with sales. If you are looking to buy flaxseed, it is a good idea to start looking now. The prices are still likely to continue to rise as the general consensus is we have hit the bottom in terms of raw material price. However, it can be noted, the Dollar is continuing to support such low prices.
The termination of the Ukraine export corridor is a major setback for the global agricultural market. Ukraine is a major producer of sunflower seeds, and the loss of this export route will put upward pressure on prices. The termination of the corridor is also likely to lead to increased storage costs for farmers. If they are unable to export their crops, they will have to find other ways to store them, which will add to their costs. The termination of the corridor comes at a time when global production of sunflower seeds is already expected to decline. This, combined with the increased demand from China and India, is likely to lead to even higher prices for sunflower seeds in the coming months. The termination of the corridor is a reminder of the importance of trade for the global agricultural market. When trade is disrupted, it can have a significant impact on prices and availability.
The millet market is currently stable, with prices expected to remain at current levels until the new crop comes into play. This is due to a number of factors, including the ongoing Russia-Ukraine conflict, which has disrupted global supply chains. Warm weather in Europe is also expected to contribute to stable prices. The situation in the United States has changed slightly as the updated acreage report has just been received and shows that millet is on par with last year’s planting. Despite droughts, some timely rains have stabilised the market and prices are softer than 6 months ago.
The Czech Statistical Office's cultivation forecast for the 2023 poppy seed crop has caused a stir among market experts. The official estimate of 26,000 ha is significantly higher than the market players' expectations of 16,000-18,000 ha. There are two main theories to explain this discrepancy. One possibility is that there has been an error in the statistics. The other possibility is that the farmers used parts of their previous year's crop for cultivation. The unofficial cultivation estimates of the market players are usually based on the sales figures of the seed in spring. If the sales figures were lower than expected, this could be an indication that the farmers used less seed for cultivation. The debate over the cultivation forecast is likely to continue until more information is available. In the meantime, market players will have to adjust their expectations accordingly.
The pumpkin seed market is currently in a state of flux. The overall demand is steady, but there are some concerns about the new crop. The weather has been favorable so far, but there is always the risk of a late frost or other weather-related problems. The planting acreage for Shineskin variety is up 40% from last season, which is a positive sign. However, the planting acreage for GWS has decreased by 40%, which is a negative sign. This could lead to higher prices for GWS in the new season. Overall, the pumpkin seed market is facing some challenges, but there are also some positive signs. It will be interesting to see how the market develops in the coming months.