Kazakh wheat fell in price by $25 a month

The cost of Kazakh Wheat for Central Asian markets are currently $290-300 depending on quality (DAP Saryagash) per tonne. A month ago the price range was $315-325.

The reason is both the decrease in the tenge (from 460 to 470 tenge for $1) and the drop in prices on the domestic market due to shipping problems and the pressure of the cheaper Russian grain. The price of wheat in the northern regions of Kazakhstan is currently about 115 thousand tenge/ton (incl. Accordingly, farms sell it at a price of about 100 thousand tenge, and Russian grain is also below that.

Prices peaked in June, when Kazakh wheat was shipped for export at $420-425 per ton. The price of wheat on the domestic market at that time was about 180 thousand tenge/ton and compared to the beginning of the year it increased by a third (from 120 thousand tenge/ton) as deliveries from Russia were stopped.

Note that global wheat prices are also under pressure. March futures trading on the US stock exchange closed at $7,5 a bushel last week. In March of this year, due to the closure of Ukraine's ports, the price rose to $13,5.

Meanwhile, as of December 21, export duties on Russian wheat will increase by 6%, from 3 thousand 143,4 to 3 thousand 333,8 rubles per ton. The indicative price was $314,4 per tonne versus $313,4 a week earlier.

Source: Eldala (Kazakhstan)

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