Offers for grain deliveries from the Black Sea ports of Ukraine appeared on the market

After two ships entered the port of Chornomorsk through a temporary corridor, loaded with grain and left it, demand for ship freight to Black Sea ports and offers for product deliveries from them appeared on the market, AgriCensus reports.

Sources report that offers appeared on the market, albeit nominal, for deliveries of corn at FOB South, Odesa and Chornomorsk at $183-190/t and fodder wheat at $186/t. At the same time, on the FOB – Danube ports, prices for fodder wheat fell to $166-169/t, and for corn – to $177-195/t.

The prices of the nearest producers in the region are much higher, so fodder wheat in Constanta is offered at $235/t FOB, corn at $226/t FOB, corn at CFR Spain at $240/t.

While the majority of trade is based on delivery to the buyer. Some sellers offer deliveries from Ukrainian ports, but buyers are afraid of risks and the occurrence of force majeure circumstances.

Adequate ideas of freight rates are needed for sales on terms of delivery, otherwise the level of FOB prices will have to decrease even more, because currently very few ships are ready to enter the Black Sea ports of Ukraine, so the costs are too high.

Thus, the freight cost of a light vessel from the Ukrainian ports of ROS to Spain is at least $60/t, while the freight from Constanta on the same route costs $21-22/t.

Last week, two ships, Resilient Africa and Aroyat, entered the port of Chornomorsk, and now Resilient Africa with a shipment of wheat has already successfully passed through the Bosphorus.

There is information on the market that a few more ships have been chartered and will soon call for loading at the Black Sea ports.

Tags: Ukraine, export, Black Sea grain corridor