FOB prices for grain are falling; the Azov Sea freight market is keeping at the same level without declining. There is no further drop in rates, as well as the inflow of open spot tonnage. It is safe to say that for a certain time period, agreements have been found on the level of prices and freight rates. Besides, there was unexpected news about pending deregulation of grain prices and exports, which makes it difficult to work on export planning. Producers and Traders are gradually approaching the need to sell off old stocks on the brink of the expected fall in FOB prices starting from July.
The coasters market of the Black and the Mediterranean seas is still high. The rate for the voyage from Kherson to Marmara is offered at the level of more than USD 20 per ton of bran. Importers continue to reduce prices; therefore shippers try to have time to ship on the dates indicated by the contracts, which maintains a high dynamics of shipments. The demand for spot tonnage and for the dates of April beginning is still being kept. A significant part of grain for export has already been shipped; state tenders with April shipment dates have already passed, and, judging by the chronology of their conduct, there will be only one more period of shipments for public procurement before the new harvest. Then buyers will try to “hold out” until the new crop grain, which is already quoted much lower than now on the market.
The situation with the water level in the Kochetovsky lock is very similar to last year: on the dates of the vessels’ movement beginning, the water level is predicted to be 3.1 meters. Despite promises to move water from the Volga River, Owners calculate the economics based on the load on 3 meters. And considering the fact that today’s grain sales are complicated by declining FOB prices from buyers and the low exchange-value of lira, many Owners are looking for alternative work options.