Prices for Kazakh Wheat continue to decline. The reason is the resumption of the supply of cheap Russian Grains.
In addition, traders point to the growth in the abundance of “gray” grain from the Russian Federation, which is not subject to VAT. This puts additional pressure on prices. In particular, “greyer” can now be used Wheat at the border with Russia at a price of 285 €/Tonne be purchased. Officially imported grain with VAT is offered for €305/ton. Kazakh farmers also had to reduce prices to this level.
Recall that between mid-March and early July, the price of a tonne of third-class wheat rose to €366/tonne during the ban on the supply of Russian grain to the EAEC countries.
The buyers of Kazakh Grains have already reacted to a change in the price situation. In particular, Uzbek buyers are currently offering $350 a ton of grain, compared to $450 in mid-June.
At the same time, the market expects further price reductions. A drop to €265/ton is possible with the start of the mass harvest.
Note that the price of wheat on the Russian home market is now between €219 and €254/tonne, depending on the region.
The exchange price for wheat in the USA is $8,14 per Scheffel, which is 20% lower than a month ago.