Ukraine corn harvest to strain storage as exports stall
Ukraine’s corn harvest is set to intensify pressure on grain storage, as slow exports, occupied elevators and higher storage costs push farmers toward temporary bags, risky facilities or delayed harvesting. Ukraine could face a domestic grain storage shortfall of 8 million-11 million metric tons in November if exports remain slow, agrarian policy and food minister ...
Ukraine's corn harvest is putting pressure on grain storage facilities due to slow exports, occupied elevators, and higher storage costs, according to agrarian policy and food minister Taras Vysotsky. The country could face an 8-11 million metric ton shortfall in domestic grain storage in November if exports continue to lag, according to Vysotsky.
Corn harvest is expected to begin in October, with wheat and rapeseed already occupying storage facilities. Blocked ports and slow export flows have reduced stock turnover, with about 90% of storage facilities already booked or full. Remaining capacity includes facilities near the war zone, where users face the risk of total loss and lack insurance coverage.
Storage costs have risen 45%-55% since the start of the Russia-Ukraine war and could increase by up to 70% by autumn if logistics disruptions force grain storage in polymer bags. Small producers may rely on on-farm warehouses, though limited capacity could delay harvesting. Some traders are less concerned, noting the availability of emergency alternatives like plastic bags or leaving corn in the fields until spring.
However, this could result in yield and quality losses, as each farmer weighs the risk of leaving corn unharvested through winter. Uncertainty over the harvest and new crop availability has slowed regional selling, leaving limited price indications. Platts assessed Ukraine corn FOB POC at $221/mt on August 14 for September 11-25 loading.
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