Power supply disruptions in Ukraine may dent efficiency of agricultural exports by rail - brokerage
MOSCOW. Nov 25 (Interfax) - The railway logistics of agricultural products bound for foreign markets may become complicated soon because of power supply disruptions in Ukraine, prompting agricultural producers to deliver some of their exports to foreign markets by road.
Almost all of Ukraine's sea and river ports suspended their operations after November 23, Ukrainian media said, citing Spike Brokers, a Kiev-based brokerage company.
Spike Brokers said that in the past week it signed deals on the delivery of fodder wheat to Poland for $235 per tonne, on the delivery of sunflower to Bulgaria for $575 per tonne, sunflower to Hungary for $570 per tonne, non-genetically modified rapeseed to Hungary for 560 euros per tonne, non-genetically modified soya to Italy for 580 euros per tonne, and genetically modified soya to Italy for 565 euros per tonne in November-January.
Prices for Europe-bound corn continued to decrease as its imports grew, Spike Brokers said. However, the level at which customers' warehouse are filled up today does not allow the company to stay confident that aggressive buying will continue. The latest customer indications over the past week was DAP Poland (border) $215-$220, DAP Hungary (border) 230 euros to 235 euros, and DAP Romania (border) 225 euros to 230 euros.
At the same time, fodder wheat prices are approaching their substantiated premium of $20-$30 per tonne over corn prices. The latest customer indications are DAP Poland (border) $235-$245, DAP Romania (center) 250 euros to 270 euros, and DAP Lithuania (center) 260 euros to 280 euros.
Sunflower prices remain within the range seen over the past week, Spike Brokers said. The oilseed category has good prospects amid the energy sector's additional demand for it in 2023. The latest customer indicates are DAP Bulgaria (center) $565-$575, DAP Romania (center) $520-$540, and DAP Hungary (center) $545-$555.
Meanwhile, the amount of rapeseed from Ukraine and countries of Eastern Europe currently available on the EU market gives no chance for the consolidation of prices today. The latest customer indicates are DAP Germany (east) 570 euros to 590 euros, and DAP Hungary (center) 555 euros to 560 euros.
The soya market of Hungary and Romania is overfilled by supply from Ukraine. Its players are actively selling soya on Italy's markets together with us," the company said.
The latest customer indications for soya over the past week are DAP Italy (south) 570 euros to 580 euros (non-genetically modified soya), and DAP Italy (south) 560 euros to 565 euros (genetically modified soya).