Last week, Kazakhstan saw a rise in wheat and barley prices both domestically and for export. The changes are due to the resumption of rail shipments, increased demand from exporters, and the weakening of the tenge against the US dollar, according to Evgeny Karabanov, head of the analytical committee of the Kazakhstan Grain Union.
According to the expert, the largest price increase over the week was for grade 5 wheat: +2,000 tenge per ton, bringing the price to 72,000-76,000 tenge per ton.
Prices increased by 1,000 tenge per ton for grade 4 wheat (77,000-81,000 tenge), grade 3 gluten grades 23-24 (86,000-90,000 tenge), grade 3 gluten grades 25-26 (91,000-95,000 tenge), and barley (76,000-81,000 tenge).
Export prices for wheat (delivery under DAP Saryagash terms) also continued to rise:
- Grade 3 (gluten 23-24) - USD 220-225/t (+2 USD/t)
- Grade 3 with gluten 25-26 - USD 225-230 (+3 USD/t)
- Grade 4 - USD 207-212 (+4 USD/t)
- Grade 5 - USD 198-203 (+3 USD/t)
According to Evgeny Karabanov, export prices for feed meal (delivery terms DAP Alashankou/Khorgos, USD/t) also increased last week:
- Protein 10-11% - USD 217-222 (+2)
- Protein 11-12% - USD 222-227 (+2)
- Protein 12-13% - USD 226-231 (+1)
Barley export prices also increased:
- DAP Saryagash – by USD 2/t, to USD 182-187/t;
- FOB Aktau – by USD 2/t, to USD 212-217/t;
- DAP Dostyk/Altynkol – by USD 1/t, to USD 191-196/t.
"Deferred demand for wheat in southern markets is leading to increased shipping, which is constrained by rail capacity. This has led to a shortage of grain and flour in traditional markets and an increase in export prices. Demand for barley from Iran and China continues to support domestic prices," noted Evgeny Karabanov.