Ukraine has exhausted its quota for duty-free wheat exports to the EU

Ukraine has exhausted its quota for duty-free wheat supplies to the EU, and in case of further supplies, exporters will have to pay duties, which makes Ukrainian grain uncompetitive on the European market. Therefore, the activity of European buyers has decreased sharply and they have stopped buying Ukrainian grain at the western border, and the main export destinations for Ukrainian wheat have become the ports of the Danube and Constanta in Romania.

 

Export restrictions amid a significant supply of wheat are increasing pressure on prices in Ukraine, which have continued to decline over the week.

 

At the same time, in Constanta, prices for food wheat of class 2 rose to $244/t DAP, and for class 3 - to $241/t DAP.

 

After the EU quota is exhausted, the development of alternative export routes for Ukrainian wheat is becoming increasingly relevant. And the significant supply and limited export logistics capacity continue to lower domestic prices.