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Supply Chain

Grain Exports From Ukraine Down 44% So Far In June, Data Showed

Ukrainian grain exports in the first 22 days of June fell by around 44% from a year earlier to 1.11 million tonnes, agriculture ministry data showed.

The volumes included 978,000 tonnes of corn, 104,000 tonnes of wheat and 24,000 tonnes of barley, the data showed.

Ukraine exported up to 6 million tonnes of grain a month before Russia launched an invasion on 24 February. Moscow calls its action a special military operation.

May export volumes fell to about 1.7 million tonnes as Ukraine, which used to export most of its goods through seaports, has been forced to transport grain by train via its western border or via its small Danube river ports.

Russian Export Prices

Russian export prices for the new wheat crop, which farmers will start harvesting within days, fell last week due to good crop prospects and after a decline in Chicago and Paris prices, analysts said.

Prices for the new wheat crop with 12.5% protein content and for supply from Black Sea ports fell by $20 to $400 free on board (FOB) at the end of last week, the IKAR agriculture consultancy said.

Sovecon, another consultancy, said prices for Russian wheat for supply in July-August were assessed at $390-$400 per tonne compared to $403-$410 a week ago.

Russia exported 500,000 tonnes of grain last week compared with 220,000 tonnes a week earlier, Sovecon, said, citing data from ports.

The weather conditions were favourable for the new crop last week with healthy rains in the most producing regions, Sovecon said.

However, part of Russia's south, its breadbasket, could see more rains this week, which is not welcome at this stage as it could potentially worsen the quality of the new wheat crop, it added.

News by Reuters, edited by ESM – your source for the latest supply chain news. Click subscribe to sign up to ESM: European Supermarket Magazine.

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