Logistical problems limit grain and sunflower oil exports from Ukraine

December’s Russian shelling of the ports of the Odessa region significantly complicated the export of agricultural products from Ukraine, which could significantly reduce trade volumes, even despite the redirection of shipments to the railway, Reuters reports, citing data from Ukrainian associations.

According to the Ukrainian Agrarian Club (UAC), as of December 22, only 375 thousand tons of wheat had been exported out of 1 million tons contracted for shipment in December. 1.5 million tons of corn had been shipped out of 2 million tons contracted, and 275 thousand tons of sunflower oil out of 410 thousand tons contracted, and total exports in December are unlikely to exceed 350 thousand tons.

“Some traders have defaulted (on wheat deliveries), while others are postponing contracts to January due to low port capacity,” the UAC noted.

In December 2024, Ukraine exported 800 thousand tons of wheat, 2.6 million tons of corn, and 378 thousand tons of sunflower oil.

This year, Ukraine managed to harvest 9 million tons of sunflower against the projected 11 million tons, so processors will be short of at least 2 million tons of raw materials this season. However, sunseed prices are falling along with the activity of processors.