March 20, 2022

International Grains Council slashes forecast for Ukraine grain exports

The International Grains Council (IGC) has slashed its projections for Ukraine's 2021/22 season grain exports citing Russia's invasion into the country fuelling concerns of potential food security risks, Reuters reported.

The IGC revised Ukraine's grain exports to 47.8 million tonnes, lower than the 62.8 million projected in February 2022.

In its monthly report, the IGC's reasons include disruption to export flows and the suspension of commercial Black Sea port loadings in Ukraine.

The IGC also said there were efforts to boost exports through railway routes utilising Ukraine's western borders but overall volumes are likely to be limited.

Ukraine's corn export forecast was slashed to 21 million tonnes from 31.9 million. Wheat exports were also projected to drop to 20.8 million tonnes from 24.5 million.

The IGC's outlook for Russia's grain exports were also lowered to 37.1 million tones from 37.7 million. The IGC said volumes may be hampered by trade finance restrictions and extra ocean freight insurance requirements even though loadings have resumed.

The IGC increased its 2021/22 season worldwide corn production outlook to 1.207 billion tonnes, 4 million tonnes higher due to improved forecast for crops in the European Union and India.

Its global wheat production outlook remained the same for in the 2021/22 season at 781 million tonnes.

-      Reuters