Railroad grain shipment surged after two-month drop

After a considerable decline in June-July, the railway transportation of grains in August demonstrated a sharp increase, Zernovoz.ua analysts report.

Within a month, Ukrzaliznytsia provided for the transportation of 3.9 mln t of grain and grain mill products, marking highest for the last three marketing seasons, thus covering 80% of grain export traffic from regions to ports.

"Export direction is the driver of such a sharp upsurge in railroad transportation, as this very type of rail traffic is the dominant one in the grain cargo segment," explained the experts.

In terms of commodity groups, there was a sizable increase in export shipments of wheat to 3.7 mln t, barley to 1.3 mln t, which is the highest volume for August in 2018-2020.

"Such dynamics is a consequence of high grain prices, which is not typical for the beginning of the season," said Zernovoz.ua analysts.

Previously reported that as of Sep. 21 agricultural commodities shipment from Ukraine dropped 14% YoY. Since the start of the 2020/21 season, staple grains export has made up 10.48 mln t.

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