Russian grain exports persist as rail delays affect U.S. fertilizer supply • Agriculture Policy News

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Bloomberg News reported yesterday that “seven weeks after its invasion of Ukraine, Russia still exports grain to some of its biggest customers, even though shipping costs are skyrocketing.

“Russian grain continues to flow to major customers despite ballooning war costs,” Bloomberg News (April 14, 2022).

“The main buyers remain Egypt, Turkey and Iran, said Dmitry Rylko, director general of the Moscow-based Institute for Agricultural Market Studies. The resilience of grain exports, despite sanctions and measures taken by some traders to avoid Russian raw materials, is prompting some market observers to increase their estimates for shipments this season.”

“Last week, the US Department of Agriculture also raised its estimate of Russian wheat exports for the current season to 33 million tonnes, although this remains below the 35 million tons he predicted before the war,” the Bloomberg article said.

“Russian grain continues to flow to major customers despite ballooning war costs,” Bloomberg News (April 14, 2022).

Yesterday’s article added that “shipping costs from the Black Sea region have also skyrocketed, climbing 50% to 80% over last year due to war risks, according to UkrAgroConsult.

And Yusuf Khan, Dow Jones Writer reported yesterday that “Wheat exports from Europe will be lower than forecast for the current seasonthe lack of Ukrainian exports continuing to cause turmoil in agricultural markets, Strategie Grains said on Thursday.

“Grains Strategy has revised down its European wheat export forecast for the 2021-22 season 31.4 million tons of 32.5 million tonnes, largely due to the disruption caused by the war in Ukraine. Meanwhile, barley and but export forecasts have been revised slightly upwards 7.6 million tons and 5.4 million tons, 7.2 million tons and 4.7 million tons respectively.

More specifically with regard to Ukraine, Reuters editors Pavel Polityuk and Jason Hove reported earlier this week that, “Corn exports from Ukraine could fall to 17 million tonnes in 2021/22, a senior agriculture official said on Wednesday, compared to 23.1 million tons the previous year, reflecting the impact of the Russian invasion.

Sunflower oil exports over the same period could fall to 3.4 million tons, against 5.3 million tonnes, Deputy Agriculture Minister Roman Rusakov told a conference in Prague.

And yesterday, Reuters editors Gus Trompiz and Sybille de La Hamaide reported that, “Reduction of crop seed production in Ukraine due to the war with Russia could affect the country’s grain production for several years, a French seed industry group said on Thursday.

Meanwhile, Bloomberg writer Elizabeth Elkin reported yesterday that,

CF Industries Holdings Inc. said reductions in rail service along Union Pacific Corp. will delay fertilizer shipments to parts of the United States, threatening to reduce supplies to farmers during the planting season.

“The largest nitrogen fertilizer company in the world said in a press release delays will affect shipments from its complexes in Louisiana and Iowa on Union Pacific rail lines to major agricultural areas from Iowa to California.

“The delays threaten to further tighten fertilizer supply and drive up prices which have hit repeat records in recent months as Russia’s invasion of Ukraine threatens a massive chunk of global supply. Russia is a low-cost exporter of all major types of crop nutrients. This is an especially important season for farmers, who need fertilizer as they plant soybeans, corn and wheat in fields across the United States. »

Reuters editors Rithika Krishna reported yesterday that “CF Industries ships to customers via Union Pacific rail lines, primarily from its Donaldsonville complex in Louisiana and its Port Neal complex in Iowa. The railway company asked the company to reduce its shipments almost 20%.

“The fertilizer producer said so may not have shipping capacity available taking new rail orders for Union Pacific rail lines meet the demand for fertilizer at the end of the season.”

The Reuters article noted that “‘The timing of this Union Pacific action could not come at a worse time for farmers,’ the CF chief executive said. Tony goes said Thursday.

“Not only will fertilizers be delayed by these shipping restrictions, but additional fertilizers will be required to supplement spring applications. may be unable to reach farmers at all,’ he added.”

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