What are Black Sea Grains?
The Black Sea grains complex encompasses wheat and corn production and exports from countries bordering the Black Sea. S&P Global Commodity Insights market coverage focuses primarily on supply from Russia and Ukraine, but also looks at exports from Kazakhstan, Romania, Bulgaria, Serbia and Hungary.
Producing 9% of total global grains production, exports from the Black Sea region accounted for 21.4% of the total exports in 2014, a testament to the region's importance as a grains exporter.
With global wheat and corn purchasing on the rise due to growing populations, increasing wealth and shifting patterns of consumption, the supply and demand balance in the world is likely to continue to tighten. As a result, the Black Sea region will continue to grow in importance and the role of price reporting and the publication of transparent and independently assessed prices of grains could carry great significance.
Additional factors will come to bear in the form of climate change, policy initiatives, financial instability and political risk. As an example, the political situation in Russia and Ukraine put additional strain on the market, with export restrictions and conflict increasing the importance of reliable and accurate reporting for stakeholders.
S&P Global is able to capitalize on its extensive commodity market experience to develop price reporting aimed at providing transparency in an industry and region which have not typically been subject to such oversight. The provision of independent prices could help in managing risk along the entire value chain, powering a new generation of financial instruments and delivering some protection in uncertain times.
Each day we provide four grains price assessments, looking at prices for Black Sea 12.5% protein FOB delivered wheat on vessels of up to 60,000 mt, Azov Sea 12.5% protein FOB delivered wheat on vessels of around 5,000 mt, Sea of Marmara 12.5% protein CIF delivered wheat on vessels of 5,000 mt and Black Sea, Ukrainian origin corn on vessels of up to 60,000 mt.
Our daily grains reporting provides news, prices, commentary and analysis, while bid and offer prices heard in the physical market are also reported live on S&P Global's real time service Platts Agriculture Alert.