These factors include market demand, weather conditions, production costs, and global trade dynamics.
Supply Factors
Supply Factors
Yield and Production Volume:Weather conditions (drought, frost, floods, storms)Technological level (use of fertilizers, pesticides, modern machinery)Area of cropsBiological quality of the product (oil, protein, moisture content, and other indicators)
Global Supplies:Production levels in major exporters (Russia, Ukraine, USA, Argentina, Brazil, etc.)Stock levels from previous years
Seasonality:Prices often decrease during the harvest season due to increased supply.
Demand Factors
Demand Factors
Feed Demand:Increase or decrease in livestock and poultry populations
Changes in animal feed diets (e.g., switching to cheaper components)
Food Industry:Use of grains (wheat, corn) for the production of flour, cereals, starches, and syrupsOilseeds (rapeseed, sunflower, soy) for the production of oils, margarine, and sauces
Energy Sector:Biofuel production from grains and oilseeds (especially corn and rapeseed)
Export Demand:Increased demand from major importers (China, EU, Turkey, India)
Economic Factors
Economic Factors
Oil Prices:Affect production and transportation costsDetermine the profitability of biofuel production
Exchange Rates:A weakening national currency makes exports more attractive, which can raise domestic prices
Government Policy:Subsidies for producersExport quotas, tariffs, or bans
Global Market Conditions
Global Market Conditions
Competition Between Crops:For example, soybeans and rapeseed compete as sources of oil and feed.Corn and wheat compete for planting areas.
Global Market Conditions:The level of grain and oilseed stocks worldwide.Forecasts for future harvests.Changes in demand for feed grains and animal feed.
Political Instability:Sanctions, trade wars, and military conflicts can impact supply chains.
Market Speculation
Market Speculation
Futures Contracts:Grains and oilseeds are traded on exchanges (e.g., CBOT, Euronext). Movements in these markets can influence physical prices.
Traders' Expectations:Changes in harvest forecasts or demand expectations can cause price volatility.
Local Factors
Local Factors
Logistics and Infrastructure:Distance from ports, availability of transportation routesCost of transportation by road or rail
Competition Among Processors and Traders:Local purchasing prices may vary depending on the number of market players
Product Quality:Grains with high protein content, oilseeds with high oil yield, or feed with low impurity levels are more expensive
Seasonal Fluctuations
Seasonal Fluctuations
Supply and demand fluctuate depending on the time of year:Harvest peak (September-November for most crops) lowers prices.In winter and spring, prices rise due to lower stock levels.
Our company focuses on grain, oilseed and feed companies around the world.
Write to us
moc.liamg%40organarut1
Call us
+7 705 086 05 13
Ⓒ2025 Turan Agro
All rights reserved
Our company focuses on grain, oilseed and feed companies around the world.
Write to us
moc.liamg%40organarut1
Call us
+7 705 086 05 13
Ⓒ2025 Turan Agro
All rights reserved