Ukraine river, maritime food exports seen rising in September – brokers

Ukrainian river and maritime agricultural exports totalled 2.2 million metric tons in Sept. 1-19 and could reach a record 3 million tons for the whole month, brokers said on Wednesday.

Spike Brokers said Ukraine had exported 2.4 million tons of farm goods in August and all of the shipments departed from ports on the Danube River.

Ukraine has traditionally shipped most of its exports through its deep Black Sea ports, but shipments have been affected by a blockade of its main seaports since Russia’s invasion in February 2022.

A deal brokered by the United Nations and Turkey which had allowed such exports collapsed in July as Russia walked away from it, saying its demands to ease sanctions on its own grain and fertiliser exports had not been met.

Ukraine can currently export limited volumes through small river ports on the Danube and via its western land border with the European Union.

But Spike Brokers said the recent launch of an alternative route for grain exports could allow shipments to increase.

A cargo vessel carrying grain has left the Ukrainian Black Sea port of Chornomorsk for the first time since the grain deal collapsed, a top government official said on Tuesday, in a test of Ukraine’s ability to unblock its seaports for grain export.
“In addition to the success of agricultural exports by river transport, the functioning of the sea route as an alternative grain corridor has been officially confirmed,” the brokers noted.

“The operators are already in active negotiations with shipowners to fix large-size vessels in the direction of Odesa ports,” it said.

The brokers said Ukraine had also increased food exports by rail and the volume reached 925,000 tons so far in September versus 913,000 tons in the same period in August.
It said exports by truck had risen to 302,000 tons this month from 287,000 tons in August.
Ukraine is expected to harvest at least 80 million tons of grain and oilseed in 2023 and the 2023/24 exportable surplus totals around 50 million tons.
Source: Reuters (Reporting by Pavel Polityuk)