BTJ 5/16 - Report: Baltic bulk market
Publication date: 2016-12-02
The EU is one of the key players on the global agricultural arena.
However, even leaders have to adapt to the situation on the market in response to demand fluctuations, competition from other regions, and often unpleasant weather surprises.
Starting with the crop that has the biggest share for the 2015/2016 season, EU farmers planted marginally less wheat than last year, down by 0.1 mln ha to 26.0 mln ha.
Overall weather conditions in the winter were fairly favourable, which had a positive impact on grain vegetation.
EU market for major crops, by Alina Mironova
The 5/2016 issue of Baltic Transport Journal in the Report section features also:
- Transneft optimistic about Russian oil products exports, by Nadezhda Sladkova
Russia is rapidly increasing its capacity to export diesel to Europe. But lower demand and tough market competition are raising new doubts over whether such a strategy is needed. We ask Transneft's Vladimir Nazarov why it is necessary to increase the country's export potential, as well as how the company is dealing with the current challenges on its domestic market.
- Food for thought, by Katarzyna Chmielewska
A recent assessment of medium-term prospects of national, regional, and global agricultural commodity markets, jointly authored by the OECD and the UN's FAO, concludes that the "era of high prices is over" for all agricultural subsectors. In 2015 the main crops, livestock, and fish product prices fell considerably. Similarly, meat prices have dropped since 2014’s record highs, and dairy product prices have been declining since 2013.
- Small-scale LNG, by Kathrine Stene Bakke and Sergiu Maznic
Some five years ago small-scale LNG (ssLNG) was considered new and exotic, with only a few early-established players having practical market experience. Driven by stricter emission regulations in the shipping sector, coupled with falling gas demand, the market showed potential for an attractive business case. The key challenge was to overcome the "chicken and egg" dilemma, which was omnipresent in any discussion about the potential of ssLNG given the need for upfront investment in costly infrastructure.