Grain shipments from Kazakhstan remain slow, according to E. Karabanov, Head of the Analytical Committee of the Grain Union of Kazakhstan, in his review for the period from March 2 to 9. The reason for this situation is new offers from exporters at newly increased prices, according to the APK News agency.
"After a sharp increase, exporter bid prices for wheat have decreased slightly. Importers are trying to assess their future prospects and are not rushing to enter into contracts en masse," noted E. Karabanov.
Nominal bid prices decreased across almost all wheat grades:
▪ Prices for grade 3 wheat with gluten grades 23-24, 27, 28-29, 30+, and grade 4 wheat decreased by USD 5/t;
▪ For grade 3 wheat with gluten grades 25-26, the decrease was USD 3/t.
The price of grade 5 wheat remained unchanged.
Export barley bid prices to DAP Saryagash decreased by USD 5/t.
Prices to DAP Dostyk/Altynkol remained unchanged.
At FOB Aktau port, prices are nominal before the start of military operations.
Due to military force majeure, no actual transactions are taking place.
Flaxseed:
The domestic EXW price increased by 10,000 tenge/t to 230,000-240,000 tenge/t (~USD 465-486/t);
The export price on FCA Kazakhstan terms remained unchanged at USD 510-515/t.
The price of Kazakh brown flax (97% purity) on DAP Poland terms increased by EUR 5/t to EUR 540-545/t. The price of Kazakhstani flax on C&F ARAG terms remained unchanged at USD 690/t, with shipment in April.
On the Chinese market, yuan prices for flaxseed increased by an average of CNY 50/t:
▪Domestic prices in China: CNY 4,750–5,150/t (USD 687–745/t);
▪C&F Tianjin port prices up to CNY 3,800–4,150/t (USD 550–600/t).
USD/CNY = 6.9160.
Kazakhstani flax is traded on DAP Dostyk/Altynkol terms at USD 545–550/t.
In summary, the expert noted:
New requirements of the Tax Code of the Republic of Kazakhstan, regarding the 80% reduction in the VAT deduction for agricultural exports, continue to impact the market. Market activity is low. Market participants continue to adapt to the new conditions and seek new price benchmarks.
Military action in Iran has completely halted barley trade. The resumption of trade depends on the duration of military action and domestic political stability in Iran.
The flaxseed market continues to rally. The price benchmark is C&F ARAG, minus logistics and premium, depending on the destination.
Export prices (USD/ton) for the period from March 2 to March 9 are as follows:
▪Wheat 3 class (23-24% class) - 260 - 265 DAP Saryagash (-5)
▪Wheat 3 class (25-26% class) - 265 - 270 DAP Saryagash (-3)
▪Wheat 3 Cl (27% class) - 275 - 280 DAP Saryagash (-5)
▪Wheat 3 Kl (28-29% Kl.) - 295 - 300 DAP Saryagash (-5)
▪Wheat 3 class (class 30+) - 310-315 (-5)
▪Wheat 4 class - 250 - 255 DAP Saryagash (-5)
▪Wheat 5th cl - 245 - 250 DAP Saryagash (0)
▪Barley - 250 - 255 - DAP Saryagash (-5)
▪Barley - 255 - 260 FOB - Aktau (0)
▪Barley - 235 - 240 DAP Dostyk/Altynkol (0)
▪Flaxseed - 510 - 515 FCA - departure station (+5)
Wheat flour, delivery terms DAP Saryagash, USD/t:
▪Kazakhstan flour (Atta - Afghan milling) - 260 - 265 (0)
▪Flour 1 s. - 315 - 320 (0)
▪Premium flour - 405 - 410 (0)
Feed meal, delivery terms DAP Alashankou / Khorgos, USD/t:
▪Protein 11-12% - 250-255 (+10)
▪Protein 12-13% - 255-260 (+10)
As reported, the domestic market is trying to recover from stagnation.