Hungary moved to ban grain imports from Ukraine following Poland’s announcement on Saturday 15 April. Reports also suggest that Slovakia and other countries may follow.

Reuters reported that talks between Poland and Ukraine took place in Warsaw on Monday 17 April, as Kyiv “aims to reopen food and grain transit via Poland”.

These countries have seen large levels of grain from Ukraine move into their countries since the invasion of Ukraine by Russia. Farmers had been protesting as grain prices declined.

Ban

Poland stated that the ban, which includes grain, meat, milk, fruit, vegetables and eggs, as well as other food, would end on 30 June 2023.

The European Commission had extended duty-free imports of Ukrainian grain until June 2024.

Farmers protested against the imports, which they claimed were resulting in a lower price for their grain and, almost two weeks ago, the Polish agriculture minister Henryk Kowalczyk resigned.

The Black Sea grain initiative, which ensures the movement of grain from ports in Ukraine, was extended in March for at least 60 days.

Expiry

However, commentators are now speculating this deal may not be extended. Its current expiry date is 18 May.

Reuters also reported that the European Union would discuss the bans by Poland and Hungary this week.

In the meantime, UK wheat prices for May and December increased by £2.60/t and £3.90/t respectively on Monday, while French wheat increased by €5.50 to €6/t across May to December prices. However, grain markets have been volatile for some weeks and it is not yet clear what impact the decisions are having on markets.

US prices also increased significantly on Monday morning, but weather is affecting those prices recently as well.

The Agriculture and Horticulture Development Board (AHDB) stated that the renewal of the Black Sea grain initiative was likely to cause volatility in grain markets.