According to the Analytics Committee of the Grain Union of Kazakhstan, EXW prices - elevator, in thousands of tenge/t, with 12% VAT:
▪️Wheat, 3rd cl (23-24% grade) - 87 - 91 (+1)
▪️Wheat, 3rd cl (25-26% grade) - 92 - 96 (+1)
▪️Wheat, 3rd cl (27% grade) - 109 - 113 (-2)
▪️Wheat, 3rd cl (28-29% grade) - 120 - 125 (0)
▪️Wheat, 3rd cl (30+ grade) - 135 - 138 (0)
▪️Wheat, 4th cl - 79 - 83 (+1)
▪️Class 5 wheat - 75 - 79 (+2)
▪️Feed barley - 78 - 82 (+1)
▪️Flaxseed - 210 - 220 (0)
----------------------------------------------
National Bank of the Republic of Kazakhstan exchange rates:
504.60 tenge/$ (-13.06)
6.48 tenge/₽ (+0.04)
594.27 tenge/€ (-12.22)
72.01 tenge/¥ (-1.51)
-----------------------------------------------
Export prices USD/ton:
▪️Wheat 3 grade (23-24% grade) - 223 - 228 DAP Saryagash (+1)
▪️Wheat 3 grade (25-26% grade) - 228 - 233 DAP Saryagash (0)
▪️Wheat 3 Kl (27% Kl) - 260 - 265 DAP Saryagash (0)
▪️Wheat 3 K (28-29% Kl) - 280 - 285 DAP Saryagash (0)
▪️Wheat 3 class (class 30+) - 295-300 (0)
▪️Wheat 4 grade - 213 - 218 DAP Saryagash (+3)
▪️Wheat 5th grade - 202 - 207 DAP Saryagash (+2)
▪️Barley - 210 - 215 - DAP Saryagash (+17)
▪️Barley - 225 - 230 FOB - Aktau (0)
▪️Barley - 203 - 208 DAP Dostyk/Altynkol (+8)
▪️Flaxseed - 490 - 495 FCA - departure station (-5)
Wheat flour, delivery terms DAP Saryagash, USD/t:
▪️Kazakhstani flour (Atta - Afghan milling) - 245 - 250 (0)
▪️1st-grade flour - 295-305 (0)
▪️Premium flour - 395-400 (0)
Feed meal, delivery terms DAP Alashankou / Khorgos, USD/t:
▪️Protein 10-11% - 220-225 (0)
▪️Protein 11-12% - 225-230 (0)
▪️Protein 12-13% - 230-235 (0)
Domestic market:
Last week, prices for wheat and barley strengthened on the domestic market.
The price of class 3 wheat with grades 23-24 and 25-26, as well as class 4 wheat, increased by 1,000 tenge/t;
The price of grade 5 wheat increased by 2,000 tenge per ton.
Barley increased by 1,000 tenge per ton.
The price of grade 3 wheat (Class 27) decreased by 2,000 tenge per ton.
Reasons: increased demand from exporters due to the upcoming New Year holidays.
Foreign Exchange Market:
Last week, the tenge strengthened against all currencies except the Russian ruble. The tenge strengthened by 2.5% against the US dollar over the week.
ETS Exchange:
Last week, the ETS Exchange recorded a total of 9,150 tons of soft wheat purchases and sales, for export only, with a zero VAT rate:
▪️ 2,100 tons of grade 4 wheat on DAP Saryagash terms, at an unreasonably low price of 87,178 tenge/t (~173 USD/t);
▪️ 1,050 tons of grade 4 wheat on DAP Saryagash terms, at an unreasonably low price of 87,553 tenge/t (~170 USD/t); ▪️ 3,000 tons of Class 4 wheat on DAP terms (station not specified), at 110,577 tenge/t (~214 USD/t);
▪️ 3,000 tons of Class 3 wheat, Class 25, on DAP terms Dostyk (to China), at 118,291 tenge/t (~229 USD/t).
Also, last week, the following wheat was offered on the ETS exchange on EXW linear elevator terms, including 12% VAT:
▪️ Soft Class 3 wheat, Class 23, at 91, 100, and 102 thousand tenge/t;
▪️ Soft Class 3 wheat, Class 25, at 107 thousand tenge/t;
▪️ Soft Class 3, Class 27, at 130,000 tenge/t;
▪️ Soft Class 3, Class 30+, at 137,000 tenge/t;
▪️ Hard Class 4, at 100,000 tenge/t.
However, transactions for these lots did not take place.
The direct purchase of wheat by JSC NC Food Contract Corporation, announced on December 19, supported demand and prices for grain and oilseed crops on the domestic market.
Export:
Following the lifting of loading restrictions in the direction of the Saryagash International Railroad Station and the approval by Kazakhstan Temir Zholy of some additional plans for shippers, exports of grain crops and milled products have increased significantly. However, both a shortage of railcars and problems with their delivery and removal to loading points are having an impact.
Restrictions on shipments to the Dostyk and Altynkol railways remain in effect.
Wheat export prices continue to rise:
- Class 3 wheat (Class 23-24) increased by USD 1 per ton;
- Class 4 wheat increased by USD 3 per ton;
- Class 5 wheat increased by USD 2 per ton.
The increase in export prices is due to a shortage of goods among importers due to previously existing rail loading restrictions.
Barley export prices increased sharply:
- Dostyk/Altynkol DAP by USD 8 per ton;
- Saryagash DAP by USD 17 per ton.
At FOB Aktau, barley prices remained unchanged.
The rise in barley prices is due to a sharp increase in demand from importers, associated with depleted stocks due to loading restrictions.
The increase in barley prices at DAP Saryagash and to China was driven by increased exports to Iran. Due to sharply lower freight rates from Aktau, export prices to Iran rose significantly the week before.
Flaxseed:
Domestic price unchanged: EXW ~410-420 USD/t;
The export price on FCA Kazakhstan terms fell by 5 USD/t to 490-495 USD/t.
The price of Kazakh brown flax (97% purity) on DAP Poland terms also fell by 5 EUR/t to 500-505 EUR/t.
The price of Kazakh flax on C&F ARAG terms also remained unchanged over the past week, remaining at 630 USD/t, for shipment in January/February.
Flaxseed prices in the Chinese market remained unchanged:
- Domestic prices in China: CNY 4,800–4,900/t (USD 685–699/t);
- Tianjin C&F port: up to CNY 3,800–3,900/t (USD 542–556/t).
USD/CNY = 7.009.
Summary:
Previous restrictions on grain and flour loading led to shortages and price increases in Central Asian markets.
Demand for barley from Iran is supporting domestic prices and driving up prices on other routes – Saryagash and Dostyk/Altynkol.