Ukraine. Grain deal extension and exports in May-June, 2023

• Grain corridor extended for 60 days, but without Pivdennyi port
• In May, exporters prefer to deliver their commodities to the Danube region ports 
• The queue for grain wagons unloading in the port of Izmail is more than a month long
• Demand for exports by trucks keeps declining 

During May 1-15, Ukraine exported 2.4 m mt of agricultural products, which is 29% less than April 1-15 (3.1 M mt). The significant decrease in exports was due to the unstable operation of the grain corridor and imports bans of 5 Eastern Earopean countries.

In May, the share of land exports in total exports remained at 15-16%.  Shipments by trucks amounted to 89 K mt, indicating a decline in demand for export by land road/by trucks.

Export by rail in the first half of May also slightly declined. The grain delivery tariff from central Ukraine to Odesa ports is at a minimum level of USD 18-24 per ton (excl. VAT).

As export flows shifted to the ports of the Danube region, grain wagons queue at the port of Izmail has become critically long.  As of May 15, 2,462 grain wagons were moving toward the port, and the queue for the wagons unloading was 31.2 days (15 days in mid April). Ukrzaliznytsia temporarily banned the shipments of wheat and corn to the direction of Izmail railway station.