Ukraine’s grain exports slump in December amid intensified strikes

According to Bloomberg, wheat exports from Ukraine — one of the world’s key grain suppliers — fell by nearly 25% in December as Russia stepped up attacks on the country’s port infrastructure, which serves as the main channel for grain shipments.

Corn exports also declined by around 13%, based on data from analysts at agri-market intelligence platform CM Navigator. Overall, Ukraine’s total grain exports in December dropped by 16% year on year, according to estimates from Ukrainian consultancy UkrAgroConsult.

Although Ukraine’s exports had been lagging behind last season throughout the marketing year, strikes on ports, processing facilities and logistics infrastructure significantly worsened the situation, said Donatas Jankauskas, market research analyst at CM Navigator.

In December, Russia and Ukraine intensified mutual strikes on energy and infrastructure facilities. Ports in the Odesa region, including Pivdennyi, were hit. A shipping terminal operated by oilseed company Allseeds was attacked, with about 30 containers loaded with flour and vegetable oil damaged and set on fire.

Continued Russian attacks on port and logistics infrastructure, particularly near Odesa, reduced effective loading capacity and led to delays and rescheduling of shipments, Jankauskas noted. Exports were also pressured by lower volumes available for shipment due to delayed corn harvesting, as well as increased competition from lower-priced suppliers.

Attacks on Ukraine’s infrastructure have continued into January, with strikes on the energy system causing widespread power outages that disrupt port operations. Still, the situation has recently improved after grain terminals in Odesa installed additional diesel generators.

Tags: Ukraine, export, grain, war