Ukraine's Duty-Free Wheat Export Quota Exhausted, Prices Plummet

Ukraine's duty-free quota for wheat exports to the European Union has been exhausted, leaving the country's grain at risk of losing competitiveness on the market.

According to the Grain Trade exchange, Ukraine has reached its limit for duty-free shipments, meaning further exports will now be subject to tariffs. This has led to a sharp decline in activity among European buyers and a shift in export routes to ports along the Danube River and Romania's Constanța port.

The exhaustion of the quota is also putting pressure on domestic prices in Ukraine, which have continued to fall over the past week. In Constanța, prices for Class 2 food-grade wheat rose to $244 per ton DAP, while Class 3 wheat reached $241 per ton DAP.

Analysts at the Grain Trade exchange warn that developing alternative export routes is becoming increasingly urgent, as ample supply and limited logistics capacity continue to push down domestic prices. The suspension of ship calls to Ukrainian Black Sea ports since July 22 due to Russian attacks has also disrupted exports.