This is an attempt to preserve food supplies (flour) as the conflict with Russia worsens. The agreement is set to limit exports to 900,000 tonnes of milling wheat in the first quarter of 2015 with an additional 300,000t in the second quarter.

But these numbers are subject to change depending on the evolving prospects for its 2015 winter crops. Despite this constraint on milling wheat exports, Ukraine is expected to export about 15.8 million tonnes of wheat in this marketing year.

This action will support milling wheat premiums in the market but it is unlikely to have any impact on feed grain markets.