Ukraine grains sellers mull steep discounts, rail transfers for stranded stocks

Owners of Ukrainian corn have received unusual proposals for their stranded stocks, including steep discounts and rail shipment through Romania, after the Russian invasion of Ukraine saw bids for Romania jump more than 25% within a few days as buyers scrambled to secure alternative supplies at short notice.

One trading house with corn stuck in storage at a Ukrainian port said March 3 it had been contacted by a bank offering $150/mt, or less than half of the $350/mt FOB Constanta price at which a Romanian corn cargo for March traded March 1.

Another source said it had been able to load some grains onto ships shortly after the invasion, although the ship had not been able to sail. Since then, it had heard of people offering railcars of Ukrainian corn on the border with Romania at $400/mt.

The rail crossing between Ukraine and Romania is complicated by the fact that the two networks operate on different gauges. Moldova is the nearest country to Ukraine's Black Sea ports of Odessa, Pivdennyi and Chornomorsk, but there is an established route for shipments through Romania, which has been used in the past for soymeal.

The Ukrainian government issued an executive order March 6 regulating exports of the country's main agricultural products to ensure food security. It introduced licensing on exports of wheat, corn, sunflower oil, eggs and chicken meat until the end of 2022.

Ukraine had exported 17.2 million mt of wheat and 16 million mt of corn in the 2021-22 marketing year as of Feb. 7, and was expected to account for 12% of the world's wheat exports and 16% of corn exports, according to the country's agriculture ministry.