Ukrainian traders are often forced to offer their grain at a price lower than a market price due to high risks and weak desire of ship-owners to enter the unblocked Ukrainian seaports.
“Currently, Ukrainian 11.5% wheat and corn could be priced at 340-360 and 315-335 USD/t FOB or even higher. However, under the current conditions, Ukrainian traders are forced to offer grains at about 290 and 260 USD/t FOB correspondingly that is very low taking into account logistics and production costs. However, many importers still do not like these prices. For example, Russia exports food wheat and feed corn at about 350+ and 335+ USD/t FOB, while Ukraine cannot do this”, – head of local markets with APK-Inform Anna Tanskaya said.
She added that the offer prices of Turkish importers revealed that they still wanted to get 25% discount.
“We still do not see strong demand from remote countries, and the prices are pressured by limited export and domestic market development. There are no many ship-owners willing to let their ships to enter the unblocked Ukrainian ports. At the same time, freight costs for delivery to Turkey decreased by 2 times, and for cargo insurance were down from 4% to 1.5% that can stimulate demand from Turkey”, – A. Tanskaya added.