The European Union is preparing to impose a 95 EUR/t duty on grain imports from Russia. Such actions will make Russian grain very expensive. Against this backdrop, Ukrainian wheat will become even more competitive on European markets.

This issue was discussed on March 19 during an analytical briefing by the First Ukrainian Agricultural Cooperative (FUAC), created within the UAC.

This month, Ukraine has already exported 1.5 million tons of wheat out of the 2.2 million tons contracted for March. Mostly feed wheat is exported, mainly to Turkey, the EU, and Asian countries. However, Asian activity is temporarily losing momentum due to the Ramadan. Italy, Portugal, and Spain are generating strong demand for Ukrainian feed wheat, which will continue to grow.

"In the coming days, the European Commission is expected to introduce a 95 EUR/t duty on grain from Russia and Belarus, which will eliminate demand for products from these countries, as they will become very expensive on European markets. With the introduction of such a duty, Ukrainian grain will further increase its competitiveness," the company said.

At present, the average conditional price for Ukrainian feed wheat is about USD144-147 per ton.

"Market operators note that the supply of wheat on the CPT market is insufficient. We can predict that next week the price tags will increase by another USD2-3 both at the ports and on the western borders," analysts said.

On DAP Italy terms for March-April delivery, Ukrainian wheat is traded in the range of 195-200 EUR/ton.