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Defaults are no surprise in view of the 2020 fall conditions. The share of defaulted forward contracts may reach 50% for sunflower seed and roughly 40% for corn.

The contract breach consequences for all agricultural market participants (from farmers to exporters) are even beyond description, as they are predicted to be extremely negative.

The weather conditions in 2020 have surely caused heavy losses to the sunflower crop. In late October, the crop size estimate itself (12 or 14 MMT) is no longer that important – it is more necessary to emphasize an unprecedented crop decline in 2020 from the 2019 record of 16 MMT.

A security guard stands at the entrance to the State Property Fund (SPF), Ukraine’s privatization agency, in Kyiv, which in July announced a tender to auction off a lucrative locomotive plant, Luhanskteplovoz. The tender was scheduled to take place on Oct. 3, with major Russian and Ukrainian industrial bidders taking part, but was cancelled by the SPF on the same day, following numerous lawsuits filed with Ukrainian courts and controversial cabinet statements.

The drought in major corn-growing regions continued intensifying in the latter half of August, and later varieties in the north of the country were affected as well.

Therefore, UkrAgroConsult reduces its forecast for Ukraine’s corn crop at the expense of a yield decrease.

Agroxy Company has become a member of Ukrainian agrarian confederation.