Gap between feed and milling wheat in Ukraine is narrowing

In recent weeks, the Ukrainian wheat market has been experiencing a seasonal price correction, but it has mostly affected milling grain. Feed wheat, on the contrary, maintains stable demand and may increase in price in the short term, which reduces the usual price difference between segments. This was reported by the analytical department of the agricultural cooperative PUSK, established within the VAR.

Export activity for milling wheat has slowed down, in particular due to a decrease in demand in traditional markets. “Milling wheat prices last week decreased by approximately $2–3/t and are currently forming in the range of $228–230/t. Some buyers, especially Egypt and the Middle East countries in general, have begun to reduce prices. Demand for food grain in these markets has begun to disappear, since the markets are currently oversupplied,” PUSK notes.

Experts predict that by the end of the week, an additional decrease of $1–2/t is possible. On the other hand, feed wheat remains competitive – demand for it is growing, in particular as the cheapest feed grain at the moment.

“On the contrary, demand for feed wheat is growing. In part, importers have stepped up purchases, since it is currently the cheapest feed grain, compared to corn and barley. Last week, the price difference between the segments reached $20/t, and it may happen that milling wheat will be even cheaper than feed,” analysts believe. However, in September, the price difference between milling and feed wheat is expected to decrease to $10–15/t. Further dynamics will depend on the stabilization of demand and market activity in October.

“In August, the supply of wheat traditionally increases: Romania, the Russian Federation, France, the USA, and Germany enter the market. The market cannot immediately “swallow” such a large amount of supply, so we see a seasonal drop in prices. There are no prerequisites for a serious price collapse,” the PUSK adds. Analysts predict that in January-March 2026, conditional prices for milling wheat may return to the level of $250-260/t on a CPT-port basis.

Tags: Ukraine, prices, wheat