ANDCorn will continue to be sold unusually high prices In the next year, As evidenced by the harvest data already concluding in the northern hemisphere. Spain net grain importer to meet the food needs of an enormous herd of cattle, however, maize is by far the grain on which we are most dependent, importing more than 9.5 million tons annually.
beginning Russian invasion of Ukraine the price of corn skyrocketed A rush that has only been partially corrected in recent months, especially since the European Commission liberalized fallow last February to allow farmers in Member States to plant crops such as corn imported from the occupied country.
What is not known is whether the “extra” hectares planted with maize – and sunflowers – within the EU will be able to cover the amount that Ukraine cannot contribute this year, or whether, on the contrary, it is necessary to look for suppliers in third countries.
Markets entered the early summer, when Ukraine could not meet the demand as in previous years. The war, the labor shortage caused by the mobilization of the youth to the front, and the occupation of several provinces by the Russians resulted in a significant decrease in the amount of cultivated land in this country.
this organization EOS Data Analytics (EOSDA), A world-renowned AI-powered provider of satellite imagery analysis and precision agriculture experts in Ukraine undertook a special project to provide data analytics for cultivation in this Eastern European country for the 2022 season.Data from his study reflected that spring planting took up one-third less surface area than the previous year.
When the corn harvest began, data from the Ministry of Agriculture of Ukraine confirmed these forecasts. According to the government, the corn harvest is 27 million tons.Compared to the 42 million tons harvested in 2021, a drop of 35% that officials attributed to the invasion of Russia.
In a typical year, Ukraine was the sixth largest producer of maize globally, but the first on the European continent and the main seller of this grain to EU countries.
Another additional challenge is the transport of raw materials from the warring country to their destination. But Russia’s new dominance of the Black Sea—and several ports seized—doesn’t reassure importers, even after the corridor agreed by the two countries and Turkey to allow ships loaded with grain to evacuate to the Mediterranean.
Therefore, alternative transportation routes were sought. Renfe and Ministry of Transport, Mobility and Urban Agenda He mobilized a train loading 600 tons of corn on the Polish-Ukrainian border to travel 2400 kilometers to Barcelona by train.
On the other hand, the sea corridor in question enabled two ships containing 63,000 tons of corn and 27,000 tons of barley to reach Barcelona.
Meanwhile, drought in Western Europe reduced crops and fallow lands were unable to compensate for weather-related losses. In Spain, for example, the production of this grain fell by 30% compared to the previous campaign. This crop depends on irrigation, which is subject to restrictions in the various hydrographic basins of the Iberian Peninsula.
This scenario, inside and outside of Ukraine, explains why corn prices have not dropped in international markets eight months after the start of the war. On the Chicago Commodity Exchange, December corn futures traded at $683 per 5,000 bushels this week, prices similar to February but lower than prices in April and May, when highs of around $900 were reached.
It should be noted that the main destination of corn in Spain is animal feed, so its prices affect the meat industry, one of the most important in the country.
Source: Informacion
Christina Moncayo is a contributing writer for “Social Bites”. Her focus is on the gaming industry and she provides in-depth coverage of the latest news and trends in the world of gaming.