European buyers have almost stopped purchasing Ukrainian wheat at the western border

Further imports above the established volume involve payment of duties, which makes Ukrainian grain lose its price competitiveness.

European buyers have practically stopped purchasing Ukrainian wheat at the western border due to the exhaustion of the EU quota. This was reported by analysts at White Brokers, Latifundist writes.

On the domestic market, wheat prices mostly decreased last week. The supply of grain remains high, but due to logistical restrictions, it is becoming increasingly difficult for farmers to find buyers and sell the crop.

Due to restrictions in the western direction, the main volumes of Ukrainian wheat are now directed to the Danube ports of Ukraine and Constanta, Romania.

“There are practically no buyers at the western border due to the use of the quota for Ukrainian wheat in the EU. Further deliveries require payment of duties, which makes Ukrainian wheat uncompetitive in price for European buyers,” White Brokers noted.

At the same time, prices for food wheat on the DAP Constanta basis increased slightly. Grade 2 wheat was traded at $244 per ton, grade 3 at $241 per ton.

As USM reported the day before, wheat exports from the Black Sea are falling, but the world market has not yet responded with a price increase.