Full explanation
Based on international standards GAFTA 49/78 (Grain and Feed Trade Association) or FOSFA 4 — automatic alignment with London arbitration. Key elements of a Ukrainian grain forward: (1) basis — CPT Odesa / Chornomorsk / Pivdenniy or on-farm storage, (2) quality — class-2 wheat under DSTU 3768:2018 (protein ≥12.5%, gluten ≥25%), (3) delivery window — specific month, (4) price — fixed or indexed to MATIF/CBOT + basis, (5) non-delivery penalty — 1–5% per month of delay. Risks: (1) crop failure — 25–40% contract value penalty + buyer's cover-purchase costs, (2) below-contract quality — 5–25% discounts, (3) counterparty — buyer bankruptcy. Mitigation: 15–30% upfront, machinery collateral, crop insurance. Main buyers of Ukrainian forwards: Cargill, Bunge, ADM, COFCO, NCH Capital, AgProlansy, Nibulon, Kernel.