First successes in the transport of Ukrainian grain

The Ukrainian transport of agricultural products under the Black Sea Grain Initiative resulted in a fall in grain prices in global markets.

In the first half of August, according to the agreement concluded at the end of July, over 500,000 tonnes of grain were exported from Ukrainian ports on the Black Sea on board 21 ships. This is much less than before the war, but in conflict and drought conditions, it is significant.

We have seen signs of stability in the global food markets.

Antonio Guterres, UN Secretary-General

The number of mass carriers coming from Ukrainian ports is increasing. The key question is whether, if the Russian invasion continues, larger ships can cross the shipping corridor, which will increase the volume of transport.

Ukraine has unlocked grain that was blocked in silos across the country, and this will cause prices to fall on the market. The main task is to ensure the safety of the corridor for shipowners and no additional charges.

Elena Neroba, analyst at Maxigrain brokerage company

The export of grain from Ukraine during the 2022-2023 season is 30.4 million tonnes against the July forecast of 22.6 million tonnes. Before the war, 5 to 6 million tonnes were exported from Ukrainian ports per month.

Ukraine continues to send grain by alternative land and river roads.

Future contracts for wheat in Chicago fell by 4.8% to $7.4325 on Thursday, the lowest level since January.

War risk insurance premiums can reduce transport competitiveness to remote locations. Ukraine has been the main supplier of maize to China for many years and exporter of sunflower oil to India.

Last week, there was a rise in corn prices and a fall in soy prices in Chicago.

Source: Bloomberg