Ukraine shuts ports as conflict threatens grain supplies
Ukraine's military has suspended commercial shipping at its ports after Russian forces invaded the country, an adviser to the Ukrainian president's chief of staff said, stoking fear of supply disruption from leading grain and oilseeds exporters...
Ukraine's military has suspended commercial shipping at its ports after Russian forces invaded the country, an adviser to the Ukrainian president's chief of staff said, stoking fear of supply disruption from leading grain and oilseeds exporters.
Russia earlier ordered the Azov Sea closed to the movement of commercial vessels until further notice, but kept Russian ports in the Black Sea open for navigation, its officials and five grain industry sources said on Thursday.
Global farm commodities trader Cargill Inc said an ocean vessel it chartered was "hit by a projectile" on the Black Sea, but that the ship remained seaworthy and all crew were safe .
Ukraine is a major exporter of corn (maize), much of it destined for China and the European Union. It also competes with Russia to supply wheat to major buyers such as Egypt and Turkey.
Industry estimates currently put Ukraine's grain exports at about 5 million to 6 million tonnes a month, comprising about 4.5 million tonnes are corn, 1 million tonnes of wheat and a remaining share of mainly barley.
Main grain export ports include Chornomorsk, Mikolayiv, Odessa, Kherson and Yuzhny.
Egypt's state grains buyer cancelled an international purchasing tender for wheat on Thursday amid reports that no offers of either Russian or Ukrainian wheat had been received.
"The market is still struggling to get a clear picture of the actual military situation on the ground. The ports in the Azov and Black Sea so far seem not to have been damaged according to the initial shipping agency reports," one European grain trader said.
The trader said the market was looking out for any declarations of force majeure, meaning suppliers will not fulfill contractual obligations because of extreme circumstances.
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