ODESA: Vessel owners are not in a hurry to send their ships to Ukrainian unblocked ports because of the high risks. Ukrainian traders are forced to offer grain at below market prices.
According to APK-Inform analysts, currently Ukrainian wheat with 11.5% protein and corn could be traded at 340-360 and 315-335 USD/t FOB and even higher. However, in the current situation, Ukrainian traders have to reduce price and give offers at 290 and 260 USD/t FOB respectively. This is already quite low, taking into account logistics costs and production costs. For example, Russia exports milling wheat and feed corn at prices of 350+ and 335+ USD/t FOB, respectively. APK-Inform experts note that Turkish importers continue asking from Ukraine a 25% discount from market prices.
Demand from more distant countries didn’t come yet and prices remain under pressure from limited exports. So far, there is no significant activity among vessel owners to send their vessels to the unblocked Ukrainian ports. Along with this, the activity of demand in Turkey should increase against the background of decrease in the cost of freight in this direction, and for cargo insurance – from 4 to 1.5%.