Impact of Russia-Ukraine War on Amino Acid Market
Feb 28, 2022
As of 18:00 BST on the 24th, CBOT agricultural commodities soared across the board.
Corn futures also rose, up more than 5% to 716.25 cents/bushel, the highest level since June 10 last year.
May soybean futures rose 4.7 percent, hitting a high of 1,756 cents/bushel, the sixth consecutive session of gains and the highest level since 2012.
Soybean meal futures rose 3.8%, while soybean oil futures rose 5.67%.
The 2021/22 Ukraine's corn production is 42 million tons, or 3.5% of total global production; Russia's corn production is 15 million tons, or 1.2%.
Ukraine's corn exports rank fourth in the world, with an estimated 33.5 million tons, accounting for about 16% of total global exports and 80% of the country's corn production, having replaced Brazil as the third in the world in 2021; Russia's corn exports are 4.5 million tons, accounting for 2.2% of global exports.
China is the most important exporter of corn and sunflower oil to Ukraine. According to customs data, China imports about $3.2 billion of grains from Ukraine in 2021, ranking as the third source of Chinese grain imports, after the United States and Brazil.
Among them, China imported 8.24 million tons of corn from Ukraine in 2021, accounting for 29.07% of the total, mainly for feed processing. Expert analysis suggests that the war between Russia and Ukraine will continue to push up corn import prices in the short term, thus affecting a new round of price increases in the Chinese amino acid market. Before the escalation of the conflict in Russia and Ukraine, European lysine hydrochloride was quoted at 2.8-3 euros/kg and lysine sulfate at 1.9-2.1 euros/kg.
There is no sign of an end to the war between Russia and Ukraine, and the amino acid market will remain in a state of continuous price increases and stockouts. If you have a new purchase plan, please contact us as soon as possible! More offers at Alibaba March EXPO!
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