Ukraine Exhausts Quota for Duty-Free Wheat Exports to the EU

Ukraine has exhausted its quota for duty-free wheat exports to the EU, which requires the payment of duties and reduces the competitiveness of Ukrainian grain in the European market. European buyers have significantly reduced their activity and have virtually ceased purchases of Ukrainian grain at the western border. The main export routes have shifted to the Danube ports and the Romanian port of Constanta. The restriction of access to the EU market and the high supply of grain in Ukraine are increasing pressure on domestic prices, which continued to decline last week. In Constanta, the price of food wheat has risen: second-class grain has increased to $244 per ton DAP, while third-class grain has risen to $241 per ton DAP. After exhausting the duty-free quota, finding alternative routes for exporting Ukrainian wheat has become crucial. The high supply of grain and limited export logistics capacity continue to pressure the domestic market. Ukraine is capable of exporting about 4.5 million tons of cargo monthly thanks to alternative logistics covering the Danube ports, railways, and road transport, which covers a large part of the 6 million tons that the Ukrainian maritime corridor usually provided.

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