Miller Magazine Issue: 138 June 2021

96 MARKET ANALYSIS MILLER / june 2021 ments for growing corn. In the North-East of the PRC, the sown area for soybeans will amount to 2.5 million hect- ares, which is 17% less than a year earlier. The total yield should be 5.33 million tonnes of soybeans. At the same time, there is a significant decrease in the price of soy- beans. A significant decrease in prices is also observed for contracts for delivery in September of this year, primar- ily, this is due to the statement of the Premier of the State Council of the People's Republic of China, Mr. Li Keqiang, about more careful control over prices in the grain mar- ket. In general, the volume of trade in soybeans has sig- nificantly been decreased, many trading companies have stopped purchasing and are now only selling their stocks. Customers began to impose stricter requirements for product quality, the number of product returns has been increased by several times. In the south of the country, prices also continue to decline, despite the fact that there are already very few ending stocks left. Despite modest gains on the Dalian Stock Exchange, soy- bean oil prices remain very low on the real market in China. The main factors are a decrease in demand from end customers (a seasonal phenomenon), an attempt by factories to sell off stocks, a low price for soybeans and regulatory policy from the government. The price of GMO soybean oil, on the exchange in Dalian, was 9136 yuan, while the price of non-GMO soybean oil is about 10,300 yuan or 1289 USD CIF China port. In Ukraine, due to the lack of attractive export demand, crush- ers began to stop actively. Traditionally, this happens a little later, but this season, due to the lack of raw materials and the inflated expectations of farmers, processors have found it easier to stop production earlier. In this situation, the export of sunflower oil from Ukraine will not exceed the limit of the Memorandum, and domestic prices for sunflower of the current crop will significantly decrease. What is key for these days – sunflower needs up to 2500 C degrees per season. And keep in mind – I’m still not wearing my sundials. Will corn still run the market or wheat became the queen? Defiantly we are staying just in front new portion of weather surprises and this story not over. So, let’s turn the page for the new chapter. It will not be corny.