Wheat trades at $250/t in Polish ports, but high transport costs erode farmers’ margins

Wheat purchasing prices continue to rise at Polish ports, with buyers offering around $250/t (approximately PLN 1,000/t) for September delivery contracts. However, according to Polish publication Farmer.pl, this price level does not necessarily translate into attractive profitability for many farmers.

The main challenge remains the high cost of transporting grain from farms to port terminals. Rising logistics expenses significantly reduce ex-farm prices, leaving producers with returns well below the prices quoted at the ports.

Market analysts note that farmers located farther from the Baltic coast are the most affected. For these producers, rail and truck transportation costs substantially reduce marketing margins and offset much of the benefit from stronger port prices.

In addition to logistics, the market is being influenced by broader global trade trends and uncertainty over the size and quality of the new harvest. As a result, farmers face a difficult choice between locking in the current $250/t price for September delivery or waiting for a potential increase in domestic wheat prices.

Tags: wheat, prices, Poland