Region: Volga-don basin, the Azov sea, Black sea, Caspian sea
Tonnage: Bonfire

At the 30th week freight market of Azov region, finally perked up. Despite all preconditions to the maintenance of high grain prices, a strong Euro, China purchases large amounts of grain in the United States, as well as predictions about the formation of food stocks due to the ongoing pandemic, there was a slight reduction of quotations on commodity exchanges, making the sale has moved forward. Buyers, one way or another, were forced to cover the needs of production in the grain, and went for the deal. In the result, the rate fell $1 to the working level of the market, and flight from Rostov for Samsun was trading at $14-15 per tonne of wheat. However, due to the high price and complexity of predictions on the commodities market, sales are still in the spot and prompt with the shipment of a maximum of a week or two ahead. Long grain programs, most have not been formed.

In General, the mood is such that many from the second half of August is expected to strong growth in sales volumes in the commodities market, and accordingly, the increase in traffic and rates. However, too much to hope that the market sprang, still not worth it. There are a number of constraints. First and foremost, is competition from the Ukraine, where the grain market and exports quite strongly monopolized. Secondly, it is somewhat changed structure of the domestic market of Russia. Domestic producers are increasingly more careful and subtle approach to selling grain, not in a hurry and stick it in the fluctuations of prices or exchange rates. And in the last year or two they got the alternative to export as domestic sales. Thirdly, in the market for some time it formed quite a significant force in the form of VTB group, which strongly lobbies for the interests and formed under conditions of procurement and transportation of grain. In the end, it is expected that rates in August will rise to $20+ on Marmara.

After 4 August, when completed the celebration of Kurban Bayram in Turkey, is expected to bulk purchase of grain for export to Turkey. Around this same time, the wheat of the new crop should arrive in the elevators and warehouses. In the reporting week increased the number of requests for shipment with a water – out port of Novorossiysk, and RAID the Caucasus to Iran, Iraq and India parties from 20 000 to 40 000 tons.

Appeared on the market a significant number of requests for the transportation of grain from the river, mostly from the area of the Middle Volga, and it's already grain from the new harvest. It should be noted that the senders in the Caspian region, at the moment more interested in transportation by inland waterways to Astrakhan, to be able to obtain a low rate of freight, and not to succumb to "hot" deals from the Owners, promises freight to the ports of Iran. A small amount of grain from the river to Iran will take, however, Charterers will try to avoid the rush. The market already has the goods on the black sea direction, but the ship Owners still prefer not to raise the high court to reduce transit time on the background of expectations of a growing market.