Higher rail tariffs and wagon shortages lift Kazakhstan wheat export prices

Kazakhstan’s wheat export prices have increased amid a shortage of rail wagons and higher railway tariffs. From September 21, Kazakhstan Temir Zholy raised its mainline network tariff by 23.5%, adding around $2–3/t to export transport costs toward Saryagash.

Third-class wheat with 23–24% gluten rose by $5/t to $258–262/t DAP Saryagash, while 25–26% gluten wheat increased to $260–265/t. Wheat with 27% gluten gained $4/t to $263–268/t.

Logistics are also being strained by an acute shortage of wagons caused by delays at loading and unloading stations. At the same time, Kazakhstan’s grain export pace is increasing, while buyers in Central Asia continue purchasing due to low stocks and demand for higher-quality wheat.

Most wheat categories on the domestic market remained stable, while fourth- and fifth-class wheat prices increased by 1 thsd tenge/t. Feed barley rose by 2 thsd tenge/t as demand strengthened from feed producers and exporters supplying China and Central Asian markets.

Logistics costs are also rising on the Caspian route. Freight from Aktau to northern Iranian ports increased by $10/t over the week to $70/t, while rates from Astrakhan rose by $16/t to $110/t. According to the Grain Union of Kazakhstan, these freight levels are unprecedented for the routes.

Tags: Kazakhstan, export, prices, wheat, rail transportation