In Kazakhstan, export activity in the grain market has slowed amid the strengthening tenge. Prices for grain crops in both the domestic and export markets remain stable, according to Yevgeny Karabanov, head of the analytical committee of the Kazakhstan Grain Union.
"Grain shipment rates are slow. Due to the strengthening tenge, there remains a disparity between domestic and export prices in the market. For this reason, exporters are reluctant to conclude new deals, and buyers are unwilling to accept higher prices. At the same time, domestic agricultural producers are unwilling to lower domestic prices," the expert said.
According to the Grain Union, export prices for most wheat remained unchanged over the past week. Grade 4 wheat at the Saryagash International Agricultural Market increased by $2, to $257-261 per ton, while grade 5 wheat rose by $1, to $251-256 per ton.
Barley export prices to DAP Saryagash fell by $5 to $235-240 per tonne due to a seasonal decline in demand. Offered barley prices at FOB Aktau and DAP Dostyk/Altynkol remained unchanged at $255-260 and $235-238 per tonne, respectively.
As noted by Evgeny Karabanov, domestic wheat demand was also subdued last week. Market instability is being exacerbated by declining demand from feed meal producers, as most companies previously supplying products to China have not received re-accreditation in China. Currently, 27 companies have been accredited, while the remaining 69 are under review in China.
Domestic prices for most wheat products remained unchanged. The price of third-grade wheat with 23-24 gluten increased by 1,000 tenge per tonne to 93,000-96,000 tenge per tonne (ex-elevator, including 16% VAT). Barley also increased by 1,000 tenge (88,000-92,000 tenge per tonne) due to renewed demand from exporters to Iran.
"Against the backdrop of the significant strengthening of the tenge against all currencies and declining demand from feed meal producers, activity in the domestic market is low. The disparity between domestic and export prices has reduced export activity. Grain shipment rates are slowing. The resumption of shipments to Iran is reviving the barley market; however, the slow pace of shipments to China and Central Asian countries does not allow us to speak of significant activity in the barley market," concluded Evgeny Karabanov.