Grain corridor activity remains sluggish
The Black Sea grain corridor's activity continues to be sluggish since the grain deal extension in late November owing to slow vessel inspections and a general decrease in their number, which has significantly slowed exports of agricultural products from Ukraine.
The number of daily vessel inspections by the Joint Co-ordination Centre (JCC) remains critically slow, decreasing to an average of 3.5 per day for inbound ships and three per day for outbound vessels in November, with the Russian side deliberately slowing them, Ukraine's deputy infrastructure minister Yuriy Vaskov said on 7 December at a meeting organised by the Trend and Hedge Club.
The number inspections of ships inbound and outbound at Ukrainian seaports accelerated during Russia's brief suspension of its participation in the grain corridor deal in late October-early November, but has since slowed again. As of 7 December, at least 75 inbound vessels and 27 outbound were waiting for inspection by the JCC.
As a result, only 2.64 mn t of agricultural products were shipped from the Pivdennyi, Odessa and Chornomorsk (POC) ports last month, down by 1.63mn t from October.
Ukraine has officially appealed to the partners of the grain initiative — the UN and Turkey — and submitted proposals to ensure the effective operation of the JCC, including increasing exported volumes as well as transhipment capacity of POC ports, which are currently used only at around 50pc. Ukraine has also proposed conducting at least 12 inbound and outbound inspections per day each, which could ensure monthly shipments of around 6mn t of agricultural products from the country.
Ukraine, Turkey and the UN have agreed that 40-45 outbound vessel inspections per week would be optimal for grain corridor operation and efficiency, while the number of inspections has dropped to an average of 24 per week or even lower in recent weeks. To ensure this, the UN and Turkey, which are guarantors of the grain initiative, continue diplomatic negotiations with the Russian delegation.
To speed up the process, Ukraine additionally has suggested stopping inspections of outbound ships, with Turkey and the UN supporting the proposal, as well as redirecting small-sized ships to the Danube river ports, while using the POC ports for Handy-sized and Panamax-sized vessels.
The Black Sea grain corridor agreement, which was signed in Istanbul on 22 July on two mirror copies by Turkey and the UN with Ukraine and Russia separately for 120 days, was automatically renewed for the same period beginning on 19 November, and now will be valid until 19 March 2023.
About 13.3mn t of grains, oilseeds and by-products have been shipped from the POC ports since Ukraine's Black Sea exports resumed on 1 August, with at least 531 vessels departing for ports in Asia, Europe and Africa.
Related news posts
EU wheat yield forecasts rise
EU wheat yield forecasts rise
New York, 22 April (Argus) — Warm weather improved forecasted wheat yields in the EU, according to the latest Monitoring Agricultural Resources (Mars) report from the European Commission (EC). In the April Mars report, the EC cited warm spring temperatures as well as adequate water supplies as the main reasons for its increased yields forecast for the 2024-25 marketing year. In Spain and Portugal forecast yields were increased for durum wheat. The EC anticipates soft wheat yields at 5.93t/ha, compared with 5.91t/ha in the prior estimate. Similarly, durum wheat estimated yields stand at 3.47t/ha compared with 3.44t/h in the prior estimate. By Eduardo Gonzalez Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Feed grains: CVB corn offers decline
Feed grains: CVB corn offers decline
London, 22 April (Argus) — Sellers of Romanian-Bulgarian corn loading at the ports of Constanta/Varna/Burgas (CVB) lowered their offers on Monday, pushing the price closer to the levels of Ukrainian-origin product loading at the ports of Pivdennyi/Odesa/Chornomorsk (POC). As for Ukraine's feed grain market, prices at the country's deep water ports closed flat on Monday. Trading interest was limited, but could pick back up later in the week. Rail operator Ukrzaliznytsia lifted its suspension of rail deliveries to Chornomorsk. Elsewhere, Argentina's spot corn price firmed on an fob upriver/Necochea/Bahia Blanca basis on Monday. Sellers stayed away from the market, because of prevailing worries about corn output, at risk from rains delaying harvesting, and from yield losses caused by corn stunt . Further out, Argentina's 2024-25 corn crop planted areas could shrink on the year, as producers mull planting less because of issues with the ongoing harvest, market participants said. As for barley, prices for French new-crop barley could see support from farmers' reluctance to sell because of worries around the 2024-25 production. Barley crop conditions have fallen considerably from the previous two seasons, with 67pc of areas rated "good-to-excellent" as of 14 April, down by 24 percentage points (pp) on the year and by 20pp from two years ago. Meanwhile, France's corn planting pace has lagged behind previous years, but if weather improves, farmers could speed it up with limited effect on production, market participants said. Elsewhere, China's Ministry of Agriculture and Rural Affairs (Mara) forecast record corn production in 2024-25 at 295.5mn t, up by 6.7mn t on the year. Such an increase would likely cut China's feed grain import demand. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Baltimore opens third temporary shipping channel
Baltimore opens third temporary shipping channel
New York, 22 April (Argus) — A third temporary shipping channel has opened at the Port of Baltimore to allow more vessel traffic around the collapsed Francis Scott Key Bridge. Located on the northeast side of the main channel, the new passage has a controlling depth of 20-ft, a 300-ft horizontal clearance, and a vertical clearance of 135-ft. When combined with two other temporary channels opened earlier this month the port should be able to handle "... approximately 15 percent of pre-collapse commercial activity," said David O'Connell, the federal on-scene coordinator. The main shipping channel of the Port of Baltimore — a key conduit for US vehicle imports and coal exports — is expected to be reopened by the end of May, the Maryland Port Administration said earlier this month. The bridge collapsed into the water late last month when the 116,851dwt container ship Dali lost power and crashed into one of its support columns. Salvage teams have been working ever since to remove debris from the water and containers from the ship in order to clear the main channel. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Ukraine's 2024-25 wheat output forecast to fall
Ukraine's 2024-25 wheat output forecast to fall
Kyiv, 18 April (Argus) — Argus forecasts that Ukraine's wheat production in the 2024-25 marketing year (July-June) may decline to less than 20mn t because of lower planting acreages. Argus revised down Ukraine's wheat output to 19.93mn t in the next season, from 20.16mn t projected in November and 22.4mn t forecast for the 2023-24 marketing year. This is also well below the five-year average of 25.87mn t. The decreased production is the results of revised harvested areas, which are now estimated at 4.37mn hectares (ha) for 2024-25, down from November's forecast of 4.55mn ha and the current season's level of about 4.70mn ha. At the same time, Argus increased its average wheat yield forecast for Ukraine in the 2024-25 season to 4.56 t/ha, up from 4.43 t/ha in the November report, based on the latest analysis of crop conditions from its annual crop tour. This is also up from the five-year average of 4.26 t/ha. According to the latest crop tour report, nearly all regions of the country have had good precipitation since the November report, enabling crops to enter winter in good stages of development. And a good precipitation forecast in the second half of April is set to improve the crop. Ukraine's agriculture ministry this week released its preliminary projections for grain and oilseeds production in 2024-25, with the country's wheat output forecast at 19.2mn t. At the same time, the US Department of Agriculture's Foreign Agricultural Service projected Ukraine's wheat output in the coming season at 21.1mn t. By Alexey Yeromin Ukraine wheat production mn t Ukraine wheat yields t/ha Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more