Launch of the “grain corridor”

Source:  UkrAgroConsult
Author:  Maksym Kharchenko
Україна
UkrAgroConsult

Article author:

Maksym Kharchenko
Freight Market Analyst

The corridors began working on July 27 and will operate daily from 3:00 a.m. to 5:00 p.m. UTC (6:00 a.m. to 8:00 p.m. Kyiv time).

On August 1, 2022 the first ship with Ukrainian grain has already left unblocked Odessa port.

The Razoni bulk grain carrier under the flag of Sierra Leone is transporting Ukrainian corn to Lebanon.

In the opinion of UkrAgroConsult, no rise in domestic prices is expected after the opening of the ports because of a supply imbalance and limited export capabilities. However, success of the “grain corridor” would contribute to the recovery of traders’ operation and stronger demand in the Ukrainian market. Moreover, the reduction of grain logistics costs to USD 100 per ton may help growers get a higher price in the near future.

According to the State Customs Service of Ukraine, 406 K mt of agricultural products were exported by road transport on July 1-28. The products included corn, sunflower seed and sunflower oil.

According to the Ukrainian Grain Association, Ukrainian exporters declared for export some 1.77 M mt of grains and oilseeds on July 1-26, which was 140 K mt more than on June 1-26.

Full version of the article is available to subscribers  of ‘BLACK SEA GRAIN’ Weekly Report by UkrAgroConsult.

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