Hungary: Export Ban Keeps Prices Stable
The Russian war against Ukraine left the poppy market untouched, either. According to news significant, several thousands of tons of Czech poppy stocks are stuck in the Czech Republic, now waiting for a solution. The typical 20-25 ppm Czech poppy's first destination was Germany but the German decreased import in the past years caused seeking new markets of this quality poppy. Poland and Russia have appeared to buy the surplus quantities in the past two years. The Russian market is cancelled, and the question is on the table: What will be the solution for the remaining stock.
This situation is partly affecting some Hungarian players who imported Spanish and French poppy in the hope of exporting to Russia later.
As per market participants' consensus, the situation will influence the current poppy price level and the price will decrease to lower price levels below 1.80 EUR.
The delaying rains damaged the mood of the farmers in Hungary further. The grain and oilseed farmers watch the very dry sowed fields without advice. They do not even want to think about more severe drought after the evolved geopolitical situation in the direct neighbour.
After the price stop of staple foods in Hungary, the Hungarian government has declared an export ban on each grain and oilseeds because of the Russian war against Ukraine. There is a partial ban on exporting feed corn, wheat, barley, oat, sunflower, rapeseed and soy. As per the government order, the sellers have an option for export, but they must apply to the Ministry of Agricultural. The Ministry has the right to preemption of the listed products. Decision making might take one month. After that, the Agricultural minister personally will decide whether the state would buy the goods or not. If the state purchases, then the goods will be put into a state reserve. If the government does not purchase the goods, the goods are allowed to be exported.
Currently, there is no extreme hectic price movement of the vast majority of the grains in Hungary. Some price increase has happened in the past week, but this can not be seen in EUR/Mt prices because of the HUF drastic depreciation against EUR.
Feed wheat 285-290 EUR/Mt FCA HU
Feed corn 289 EUR/Mt FCA HU
Sunflower seed 657 EUR/Mt FCA HU
Rapeseed 760-840 EUR/Mt FCA HU
Poppy Seed Czech origin < 20 mg 1.90 EUR/Kg FCA CZ
This situation is partly affecting some Hungarian players who imported Spanish and French poppy in the hope of exporting to Russia later.
As per market participants' consensus, the situation will influence the current poppy price level and the price will decrease to lower price levels below 1.80 EUR.
The delaying rains damaged the mood of the farmers in Hungary further. The grain and oilseed farmers watch the very dry sowed fields without advice. They do not even want to think about more severe drought after the evolved geopolitical situation in the direct neighbour.
After the price stop of staple foods in Hungary, the Hungarian government has declared an export ban on each grain and oilseeds because of the Russian war against Ukraine. There is a partial ban on exporting feed corn, wheat, barley, oat, sunflower, rapeseed and soy. As per the government order, the sellers have an option for export, but they must apply to the Ministry of Agricultural. The Ministry has the right to preemption of the listed products. Decision making might take one month. After that, the Agricultural minister personally will decide whether the state would buy the goods or not. If the state purchases, then the goods will be put into a state reserve. If the government does not purchase the goods, the goods are allowed to be exported.
Currently, there is no extreme hectic price movement of the vast majority of the grains in Hungary. Some price increase has happened in the past week, but this can not be seen in EUR/Mt prices because of the HUF drastic depreciation against EUR.
Hungarian price levels:
Milling wheat 290-315 EUR/Mt FCA HUFeed wheat 285-290 EUR/Mt FCA HU
Feed corn 289 EUR/Mt FCA HU
Sunflower seed 657 EUR/Mt FCA HU
Rapeseed 760-840 EUR/Mt FCA HU
Poppy Seed Czech origin < 20 mg 1.90 EUR/Kg FCA CZ