Ukraine. Does logistics decide everything?

14.12.2016

In the current season of 2016/17, Ukraine’s grain market has faced a shortage of rolling stock for transporting grain freights. However, while the transport shortage was previously associated with a lack of railcars, the availability of trucks has also become an acute problem now.

According to UkrAgroConsult, the logistical difficulties in Ukraine have already caused changes in the purchasing strategies of exporters. Moreover, due to the logistical difficulties, Ukraine will appear unable to fully realize its grain export potential this season and substantially change next season’s cropping pattern. 

UkrAgroConsult points out that because of the 2016/17 grain export decline, unsold grain volumes will turn into carryovers of the next season and may pressure prices early in 2017/18. Considerable carryovers could substantially adjust growers’ intents with regard to the pattern of spring plantings.

Full version of the article is available to subscribers for weekly ag market report “Black Sea Grain & Oil” and “Online market review” by UkrAgroConsult.

 

UkrAgroConsult

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