Ukrainian wheat is pouring into the European Union: There are market prospects for cereals and oil crops in Hungary

Published 2024년 4월 17일

Tridge summary

The European grain and vegetable oil markets in the 2023/2024 market year are experiencing significant shifts due to various factors. Import restrictions have led to a dominance of cheap Ukrainian grain and vegetable oil products in the EU market, with imports from Ukraine significantly surpassing previous years' figures. This includes over 4 million tons of wheat and notable increases in sunflower oil and semolina imports, benefiting from the absence of EU import duties. The macroeconomic outlook for the EU is bleak, with no expected recovery by 2024, influenced by stagnant wage growth and a demand that hasn't rebounded to pre-energy crisis levels. Global grain market dynamics are also affected by geopolitical risks, high European interest rates, and volatile energy prices. Additionally, weather extremes across Europe are impacting crop conditions, with varying effects across the region. The geopolitical landscape, including the US presidential election, tensions in Taiwan, and the ongoing Russian-Ukrainian war, further complicates the market outlook.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In terms of European grain and vegetable oil imports, it can be seen that Ukraine dominates due to the restrictions, and cheap goods are pouring in - said FruitVeB, the Hungarian Refrigeration and Canning Association (MHKSZ) and the Department of Agriculture, Food Science and Environmental Management of the University of Debrecen at the joint vegetable processing industry conference of the Faculty's Institute of Horticulture. The development of the vegetable oil market is currently primarily determined by the crisis in the Chinese pork market through the decreasing turnover of soy, but it appears that the production of the largest global vegetable oil, palm oil, remains at a stable level. The head of the Agrarian Economy Directorate of the Institute of Agricultural Economics said that although crop cultivation in the fields is apparently far from industrial vegetable crops, the majority of growers who deal with sweet corn or green peas typically cultivate oil crops and grain crops ...

Source: Magro