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Azov Sea. Market research
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Farmers «tighten screws»
From September 1, the Ministry of Agriculture of the Russian Federation introduces new rules for farmers.
From now on, agricultural producers will be required to account for the full movement of products in the FGIS "Grain" system from collection from the fields to sale to the final Buyer.
The chosen date put peasant farms in a stupor: the introduction of strict requirements for the information accounting of grain is carried out during the active harvesting of a new crop. Collective farmers complain it takes time to master the system and collect information – the same time that a farmer should spend in the field. Also, most rural areas of the Russian Federation have unstable Internet connection or lack of it at all.
It is impossible to circumvent the system: the Ministry of Agriculture has made it clear that Russian grain producers who have not been registered with FGIS "GRAIN" are automatically deprived of state support and the opportunity to participate in stock trading as part of public procurement interventions.
But the state fight against the harvest and the tracking of illegal grain, of course, has already borne fruit. The beginning of the 34th week has stirred up the already unstable freight market of the Azov Sea. The reason was a sharp drop in prices for the transportation of commodity products: on the eve of the introduction of new rules, exporters stopped the pursuit in the mass shipment of grain. Shipowners note in a short period of time, the freight market has lost about $ 10 per ton.
Experts predict that Russian wheat exports may accelerate due to the rise in global wheat prices. However, freight rates are expected to continue falling further. Currently, spot tonnage is already beginning to accumulate in the Azov Sea. Also, the situation in the Azov region is aggravated by weather conditions due to the appearance of offshore winds.
Charterers expect the beginning of autumn: new contracts are likely to be concluded after the evaluation of the work of the FGIS "Grain", considering errors and the stability of the system.
Experts predict that Russian wheat exports may accelerate due to the rise in global wheat prices. However, freight rates are expected to continue falling further. Currently, spot tonnage is already beginning to accumulate in the Azov Sea. Also, the situation in the Azov region is aggravated by weather conditions due to the appearance of offshore winds.
Charterers expect the beginning of autumn: new contracts are likely to be concluded after the evaluation of the work of the FGIS "Grain", considering errors and the stability of the system.
Evaluating the market, specialists of AG CARGOBROKER predict an increase in demand for cubic cargo, such as sunflower, meal, flaxseeds, safflower, beet pulp.
