Due to the fight against smuggling, the prices of grain and oil crops have increased, Atria Brokers reports

During the last two weeks, the Ukrainian authorities have intensified the fight against smuggling schemes in the Danube ports, which has made it extremely difficult for exporters who buy for cash (on the 2nd form) to load ships with open customs declarations, Atria Brokers reports.

"Because of this, part of the sellers switched to covering spot contracts with producers through non-cash settlement (form 1). In response, the farmers increased the prices of the offers, which additionally increased the losses from the idleness of the vessels," the message reads.

Bad weather prevented traffic through the Sulyn Canal for several weeks, causing the line of ships to enter the Danube to swell to 100 ships, with some waiting in line for up to 3 weeks.

In addition, some buyers ask for additional discounts for extending the term beyond the 8 days set by GAFTA. Therefore, the good intentions of the fight against smuggling hit the most sensitive traders hard.

We will remind that as of October 13, the rates for the transportation of corn from the ports of Reni and Izmail to the eastern coast of Italy by coasters of 6,000 tons decreased by $3/t to $65-68/t.