In the current season of 2016/2017 Ukraine’s grain market has faced a shortage of rolling stock for transporting grain freights. However, while the transport shortage was previously associated with a lack of railcars, the availability of trucks has also become an acute problem now.
The logistical difficulties in Ukraine have already caused changes in the purchasing strategies of exporters. Moreover, due to the logistical difficulties, Ukraine will appear unable to fully realize its grain export potential this season and substantially change next season’s cropping pattern.
Experts point out that because of the 2016/2017 grain export decline, unsold grain volumes will turn into carryovers of the next season and might pressure prices early in 2017/2018. Considerable carryovers could substantially adjust growers’ intents with regard to the pattern of spring plantings. (UkrAgroConsult/Business World Magazine)
