Despite the continuation of the “grain agreement”, purchase prices for wheat and corn decreased in the ports of Odesa.
According to APK-Inform news agency, last week in the Ukrainian ports there was a decrease in traders’ demand prices for wheat and corn.
Prices were influenced by mixed factors. In general, the continuation of the “agreement” contributed to the resumption of trade in deep-water ports. But this provided only situational support for prices. Most traders have stocks formed to fulfill contractual obligations. Thus, the current demand was quickly covered, which led to the suspension of acceptance and the absence of even indicative prices. This was due to the active proposals from farmers who need capital now for spring fieldwork. Farmers started spring crops sowing in all regions of the territory controlled by Ukraine.
And most importantly, trade activity remains limited by the number of vessel calls to the ports. For example, on Thursday, without warning or explanation, Russian inspectors refused to inspect vessels entering the Black Sea. This limited the work of the “grain corridor” on April 6, but it was subsequently able to be resumed. On that day, 4 vessels passed through the “corridor” to leave the ports, and only 1 vessel to enter. This increased pressure on prices in ports and limited the activity of companies.
In the ports of Odessa, prices for corn fell mainly to 185-195 USD/t CPT-port, and for milling wheat – to 190-200 USD/t CPT-port, respectively.