Ukraine's EU Wheat Quota Exhausted, Exporters Face Duty Burden

Ukraine has reached its quota for duty-free wheat exports to the EU, forcing exporters to pay duties on further supplies. This makes Ukrainian grain uncompetitive on the European market, causing a sharp decrease in activity from European buyers who have stopped purchasing at the western border.

The main export destinations for Ukrainian wheat are now the ports of the Danube and Constanta in Romania.

Export restrictions combined with a significant supply of wheat are putting pressure on prices in Ukraine, which continue to decline. In Constanta, prices for class 2 food wheat rose to $244/t DAP, while class 3 rose to $241/t DAP.