20/07/2022

On the 29th week, an increase in freight rates is again recorded in the Azov-Black Sea region. Thus, the rate for the shipment of 3,000 tons of wheat from Azov to Marmara Sea ports is $ 55 per ton. At the same time, it should be noted that the freight market is not directly correlated with the situation in the grain market, where everyone is still waiting for the start of the new crop season. There are several factors which explain the lack of active trading. First of all, Turkish buyers are waiting for a resolution of the situation with Ukrainian grain, which may soon begin to be exported, most likely at cheaper prices than the Russian one. In addition, despite the abundant harvest in Russia, in some regions grain has very low protein levels, which makes it less attractive. At the same time, farmers do not want to lower prices for their products, given the current climatic situation in Europe, which should lead to a decrease in the harvest and an increase in demand for Russian grain throughout the season. Thus, the main exported cargoes at the moment is coal, which maintains high rates on the market.