Forward grain contracts have been suspended in the ports of Odesa Region

Forward contracts for grain deliveries have been suspended in Ukrainian ports. The cancellation of the new agreements took place against the background of russian federation’s statements about changing the terms of the Grain Initiative.

Any information about the deal has a strong impact on the market situation, Deputy Chairman of the All-Ukrainian Agrarian Council Denys Marchuk said during a panel discussion at the Ukraine Media Center.

According to Marchuk, at first prices rise and ship freight becomes more difficult. Traders then fix prices for the commodity and stop entering into new contracts.

“The stable operation of the “grain corridor” is very important for farmers, because some farmers have reserves not only of last year’s grain, but also of the 2021 harvest,” the expert noted.

USM previously wrote that a 60-day extension of the “Grain Agreement” could lead to high freight rates.