The Russians have managed to halt Ukrainian grain exports by sea through deep-water ports
19 July 15:17
Massive Russian attacks on Ukraine’s port infrastructure have brought grain exports through deep-water ports to a halt, and major traders have already stopped purchasing grain for shipment by sea. This was stated by Bogdan Kostetsky, an operating partner at the investment firm Barva Invest, in a comment to Latifundist.com, according to "Komersant Ukrainian".
According to him, most major traders have suspended grain purchases on CPT terms at deep-water ports, and some terminals have temporarily ceased operations.
“Virtually all major market players have halted purchases on CPT terms at deep-water terminals. In fact, deep-water exports have come to a standstill today,” Kostetsky said.
He noted that the situation has already affected the domestic market. In particular, since the beginning of the week, purchase prices for rapeseed at processing plants have fallen by approximately 1,000 UAH/metric ton. Grain prices are also falling on the domestic market, particularly at feed mills.
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According to Kostetsky, traders are forced to factor in the significant increase in the cost of alternative logistics—particularly for shipments to Romania—into their purchase prices.
He also reported that following the latest attacks, shipowners have begun refusing en masse to call at Ukrainian ports, citing force majeure. At the same time, he does not expect maritime exports to come to a complete halt for an extended period.
“We are now halfway through the 40-day program to compel Russia to engage in peace talks. There are still 20 days to go. Ukrainian deep-sea exports will have to remain ‘on hold,’ at least for the next 20 days, and possibly longer,” he said.
In his view, due to falling purchase prices, farmers will sell only the minimum volumes of grain necessary to maintain liquidity in the near future, while waiting for the logistics situation to stabilize.
Kostetsky’s remarks were corroborated by the decisions of the largest grain traders and terminals, which began to promptly adjust their operating conditions following massive attacks on port infrastructure.
For example, YUROL TRADING (the “Brooklyn-Kyiv” terminal) asked its partners to postpone wheat shipments by 5–7 days due to a delay in the vessel’s arrival for loading and limited grain storage capacity at the terminal. The company announced that delivery deadlines under existing contracts will be extended accordingly.
Meanwhile, “NIBULON” informed suppliers via its Telegram bot that, due to shelling of seaports and civilian vessels, it is lowering purchase prices at its elevators starting at 4:00 p.m. on July 15. Additionally, as of 2:00 p.m., the company suspended grain purchases at the OZT terminals of the State Food and Grain Corporation of Ukraine (DPZKU) and “TIS-ZERNO.”
Kernel also reacted to the situation; its assets have been attacked by Russia three times over the past five days. Over the course of a single day, the company revised its purchase prices three times at the TBT terminal in Chornomorsk. Overall, prices fell by 200 UAH/metric ton during the day:
- Grade 2 and 3 wheat — from 10.4 to 10.2 thousand UAH/metric ton;
- Grade 4 wheat — from 9.9 to 9.7 thousand UAH/metric ton;
- corn — from 10.4 to 10.2 thousand UAH/t;
- barley — from 9,350 to 9,150 UAH/metric ton.
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