Ukraine exhausts its wheat export quota to the EU

Ukraine has exhausted its duty-free wheat export quota to the EU, prompting European buyers to virtually halt purchases of Ukrainian grain at the western border. Further shipments are subject to import duties, making Ukrainian wheat uncompetitive on the European market, according to White Brokers.

Trading activity at Ukraine’s western border has dropped sharply following the exhaustion of the quota. As a result, the main export flows of Ukrainian wheat are now being redirected through the Danube ports and Romania’s Constanta.

Reduced export opportunities are increasing pressure on Ukraine’s domestic market. Wheat supply remains ample, while sales opportunities are constrained by logistics problems. Domestic wheat prices were predominantly under pressure last week.

Meanwhile, milling wheat prices in Constanta edged higher. On a DAP basis, prices for Grade 2 wheat reached $244/t, while Grade 3 wheat traded at up to $241/t.

With the EU quota exhausted, alternative export routes are becoming increasingly important for Ukrainian wheat. However, limited export logistics capacity amid ample domestic grain supplies continues to weigh on prices in Ukraine.

Tags: Ukraine, export, EU, wheat