Ukraine's Wheat and Corn Exports Hit by High Logistics Costs
The Ukrainian wheat market remains stagnant due to high logistics costs and ongoing attacks on port infrastructure by Russia. According to consulting firm Barva Invest, exports of Ukrainian wheat are complicated and expensive. The price of Ukrainian 11.5% wheat on DAP-Danube terms stood at $172-178 per metric ton on September 21.
Barva Invest noted that the most active export routes for Ukrainian wheat remain the Romanian port of Constanta and the Vadul Siret border crossing, while exports through Ukrainian Danube ports are extremely difficult due to constant attacks by Russia. The company stated that the situation is unlikely to improve in the near future.
The Ukrainian corn market is also struggling with slow export growth and anticipating a seasonal increase in supply. The DAP-Danube price on September 21 stood at $170 per metric ton. Barva Invest noted that logistics are expensive and complicated, which does not facilitate the conclusion of new deals.