Danube Drought and Russia's Attacks Imperil Ukrainian Grain Exports

Ukrainian grain exports are facing new logistical challenges due to record-low water levels in the Danube River, which is forcing shipments through Romania to carry smaller volumes and increasing costs. The heat and lack of rainfall have led to a drop in the river's water level, making it difficult for ships to navigate.

Russian attacks on Ukrainian ports are also forcing grain exports to be rerouted, but this new route has its own limitations. Viorel Panai, president of the Constanta Port Business Association and CEO of Comvex, notes that his terminal could handle 20% more cargo within the 'Solidarity Lanes' project with Ukraine.

However, the Danube River's water level affects the amount of grain arriving at the terminal. The situation is further complicated by high energy prices and disruptions in global trade due to tensions in the Middle East, causing wheat and corn futures to rise sharply on Paris and Chicago exchanges.