High-Protein Wheat Price Soars in Kazakhstan


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Sep 26, 2023 | Agricultural Markets News

Reading time: 2 minutes

Grain-receiving enterprises of Akmola region offer 140 thousand tenge (including VAT) (USD 295.3) per ton of hi-pro Wheat. Grain parameters – humidity not higher than 14%, drops below 150, gluten 30-32%, nature not less than 760 g / l. Peasant farms (do not pay VAT) are offered 130 thousand tenge for Grain of this quality.

Recall that in mid-August, the price of high-quality Wheat was around 90-92 thousand tenge/ton. Grain began to rise in price after continuous rains, which led to a delay in the harvest and a drop in the quality and volume of the 2023 harvest.

Grain-receiving enterprises offer 134 thousand tenge/ton with VAT and 124 thousand tenge/ton without VAT for an ordinary Grain of class 3 (gluten 24-25%). However, the remaining parameters of this Grain must meet the standards – humidity is above 14%, and the number of drops is not lower than 150.

The most severe problem is the reduction in the number of falls due to Grain germination. Even if it is not visible visually, these processes in Wheat are, in any case, started due to a long stay in the field in a humid environment in a state of full ripeness. Wheat with a few drops is not suitable for processing into flour and cannot go to seeds. In this regard, farmers predict an increase in seed prices up to 200 thousand tenge/ton by the sowing season 2024.

According to the expert, rains in the Akomlinsk region began on August 22, and since then, 40-55 mm of precipitation has poured onto the fields. The increased humidity of already ripened Grain led to the germination of Grain both in windrows and on the root. As a result, such Grain is unsuitable for use as seeds or for processing into flour.

However, some crops benefited from the rains. These are rapeseed and sunflower, which are harvested at a later date. The rains had a perfect effect on their growing season since they continue to develop without lack of moisture. This will provide farmers who have oilseeds in circulation with additional profitability.

Agricultural enterprises that previously thought about diversification have a high share of oilseeds in their crop rotation; for some, it reaches 30%. At the same time, farmers draw attention to the fact that Kazakhstan maintains a duty of 20% (at least 100 euros) per ton for sunflower exports. This excessive regulatory measure may prevent the formation of a fair price for sunflowers on the market. It will not allow farmers to compensate at the expense of oilseeds for the losses they incurred on Wheat.

Farmers mow sprouted Wheat and explore the possibilities of selling it. There are buyers on the market if the Grain has a sufficient protein content (at least 12.5%). However, the price for such Grain is still low, 55-65 thousand tenge/ton. In Russia, sprouted Grain is sold at 10 thousand rubles/ton.

Grain Export in Kazakhstan

In Kazakhstan, over the eight months of this year, 7.4 million tons of Grain were transported through the KTZ network, which is 29% more than last year. Grain exports increased by 40% and amounted to 6.3 million tons. This was reported by the press service of the national company “Kazakhstan Temir Zholy.”

Transportation of ground products over the same period increased by 16.5% to 1.9 million tons. At the same time, 1.5 million tons were shipped for export, an increase of 30.2%. The main markets for Kazakh Grain and milling products remain the countries of Central Asia, Afghanistan, Iran, Russia, and China.

According to the AgFlow data, Kazakhstan exported 24,700 tons of Wheat to Iran in March – July 2023. The transportation of goods through the KTZ network is carried out within the framework of the primary plan, formed for the coming month at the request of shippers, considering the capacity of the railway infrastructure.

Other sources: GRAIN UNION

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