Logistics Costs Weigh Heavily on Ukrainian Grain Market

The Ukrainian grain market is expected to be shaped by logistics costs and limited export routes in the coming months, according to experts at PUSK, an agricultural cooperative established within the framework of the Ukrainian Agrarian Council.

Crop volumes will play a lesser role in determining domestic prices than transportation costs, analysts say. The Danube route is currently operating, with grain being shipped from southern regions to Romania, while exports through the Vadul-Siret border crossing have picked up.

Wheat is being transported from Khmelnytskyi, Ternopil and Chernivtsi regions via this route, with several deals already concluded for grain deliveries to Constanta at indicative prices of $233-234 per ton for September shipment.

The market will remain under pressure from high freight rates in the coming weeks, which could lead to a further decline in wheat prices. According to analysts, wagon rental rates are currently at $40-45 per ton and may rise to $60-70 per ton in the autumn.