The grain corridor that allows the safe passage of grains and oilseeds from Ukrainian ports (Odesa, Chornomorsk, Yuzhny/Pivdennyi) is set to expire on the 17th of July,2023. According to market players, the current outlook is rather gloomy as the export levels by sea transport through the deep-sea ports of Ukraine remain low. From the 26th of June to the 3rd of July, only 4 vessels passed Joint Coordination Centre (JCC) inspections. During June, 3.9 million tonnes of grain and oilseeds were exported, 1.99 million tonnes through Odesa port and 1.9 million tonnes through Danube ports. Market players are reporting that the main effort in the new season (July 2023 – June 2024) will be focused on increasing the capacity of the Danube ports, which are not part of the grain corridor deal. Currently, Danube ports can handle only small shipments of less than 5,000 metric tonnes.
Nevertheless, last week, it was reported that the European Union is considering a proposal to set up a subsidiary of the sanctioned Russian Agricultural Bank (Rosselkhozbank) to restore its access to the global financial network and for Russia to keep (extend) the grain corridor initiative. According to market players, it is very difficult to judge the current proposal as there isn’t sufficient information on this so far. The deal extension will also depend on the outcome of the talks between the Russian and Turkish Presidents that are set to happen this week. According to market sources, Erdogan is trying to convince the Russian President to extend the grain corridor deal by another two years.
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