- Ukrainian Railways saw a 25% month-on-month increase in grain loading volumes during November.
- Average daily grain loading rose by 17% over October, indicating faster movement toward export hubs.
- Total grain transportation reached 2.425 million tons in November’s first 25 days, up 22% from October.
- This surge increases supply for export, potentially putting downward pressure on local and global grain prices.
Market Update
JSC Ukrzaliznytsia (UZ) has reported a strong increase in grain freight for November’s first 25 days. Grain loading volumes on the UZ network reached 2.299 million tons, marking a 25% rise from October and up 5.2% from the same period last year. Average daily loading was 90.9 thousand tons, a 17% increase over October’s average. Overall, total grain transportation hit 2.425 million tons, which is 22% higher than October and 0.8% above last November’s level.
Analysis
The notable surge in rail grain transport is considered bearish for the market. Improved logistics are allowing grain to reach Black Sea ports and western export borders more efficiently, which boosts the available supply for export. Increased supply can place downward pressure on both local and global grain prices. Traders should monitor port nomination data to determine if these elevated rail volumes will translate into higher vessel loadings at export terminals.
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