Many interested in Ukrainian grain. Huge supplies will flow to China
Chinese importers have bought several hundred thousand tons of feed corn from Ukraine over the past two weeks - reported Reuters on Thursday, citing sources in Asia and Europe. The Ukrainian government confirmed the sale to China.
Sep 29, 2023 | updated: 9:13 AM EDT, October 5, 2023
The exact quantity of the ordered corn is not known, but a Singaporean trader from an international grain company said the order will fill 10-12 Panamax type ships. The cargo on such bulk carriers usually exceeds 60 thousand tons. So, in total, this will amount to hundreds of thousands of tons.
"Good trend"
- I can't determine the size of the order, but I know that many traders have done it and it's a good trend for Ukrainian corn, said a person affiliated with the Ukrainian government, quoted by Reuters agency.
China was the recipient of almost one-fifth of all grains from Ukraine as part of the Black Sea grain initiative established last year. Under its provisions, Russia allowed the export of agricultural products from Ukrainian ports, which it had blocked after attacking Ukraine. As a result of the grain agreement, 34% (about 5.55 million tons) of all corn exported from Ukraine during its defensive war with Russia went to China.
In July, Russia withdrew from the grain agreement. This made the Danube the main grain export route from Ukraine, even though Russian troops have been shelling port infrastructure along the river for months.
European traders indicate that new orders can be fulfilled directly through ports in the Odessa region if the new transport channel being developed by Ukrainian authorities is implemented. The alternative is Romanian ports.
Data from the Ukrainian Ministry of Agriculture shows that 2.6 million tons of corn have been exported from the country this season, including 545 thousand tons in September.
"Source of the cheapest corn"
Ukrainian farmers claim that domestic grain prices have fallen by 40 percent due to the inability to export freely, which is forcing them to reconsider their sowing plans for next year. - Ukraine is currently the source of the cheapest corn – confirmed a trader quoted by Reuters agency.
Let's recall that from May to mid-September, a ban imposed by the European Commission on grain imports from Ukraine to Poland, Bulgaria, Hungary, Romania, and Slovakia was in force. During this time, only transit through these countries was possible. After September 15, Poland, Hungary, and Slovakia independently extended the ban.
