Logistics constraints weigh on grain purchase prices at Ukrainian ports

At the end of October, purchase prices for feed grain at Ukrainian ports declined amid logistics constraints and subdued export demand. For farmers and traders, this is a signal to assess not only the port price but also the full cost of delivery to the point of sale.

Market reports refer to feed wheat and corn. Their quotations reflect grain marketing conditions but are not transportation rates.

Danube route: lower prices and limited logistics

As of October 28, purchase prices for feed wheat at Danube ports stood at $137–150 per tonne on a CPT-port basis. They were down $5–7 per tonne week on week.

Factors cited as weighing on the market included high freight rates, limited capacity on alternative routes via the Danube, and an expected increase in Ukrzaliznytsia’s grain wagon rental rates. With demand weak, some farmers are postponing sales and keeping grain in storage.

Corn: price gap between ports persists

According to data as of October 29, feed corn at Danube ports was being purchased at $147–155 per tonne CPT-port, down $3–4 from the end of the previous week. At Odesa ports, prices fell by $4–5 over the same period to $128–135 per tonne CPT-port.

Logistics challenges cited for corn included limited access to deepwater ports, disruptions to rail exports and shipments via the Danube, as well as congestion at the western border. At the same time, active harvesting is affecting grain supply.

What to consider when planning sales

• Compare delivery terms. The CPT-port price is not the same as the price of grain at the farm: before deciding to sell, it is important to factor in delivery costs and availability.
• Check the route and transport availability. Delays, capacity constraints, and freight costs can change the actual economics of a deal.
• Compare offers by route. The quoted prices show the difference between Danube ports and Odesa for corn, but on their own do not determine which route will be more profitable for a particular seller.

What this means for the market: logistics conditions remain an important factor in setting purchase prices and choosing when to sell. Sellers should compare current offers alongside delivery costs, while buyers should clearly specify the delivery basis, route, and available transport capacity.