Kazakh farmers benefit from restrictions on wheat imports from russia

Restrictions on Russian wheat imports have supported Kazakhstan’s domestic grain market. New-crop wheat prices remain 10–15 thsd tenge/t (about $22–33/t) higher than a year ago, while local producers retain their positions in both domestic and export markets.

According to the Grain Union of Kazakhstan, Russian grain cannot quickly or fully replace high-quality Kazakh wheat. Importers continue purchasing Kazakh grain at current prices due to limited stocks and demand for wheat with the required quality characteristics.

Plans to tighten restrictions on wheat imports from russia are providing additional support to the market. Against this backdrop, demand for Kazakhstan’s fourth- and fifth-class wheat is increasing, while its share in the new crop remains limited. Poultry farms and feed flour producers are the main buyers.

At the same time, Russian wheat supplies to Kazakhstan have not stopped completely. Grain from russia continues to enter both Kazakhstan and other Central Asian countries but has so far failed to create enough competition to significantly reduce prices for local wheat.

Kazakhstan is also stepping up exports of its own grain, although shipments are being constrained by a seasonal railcar shortage and rising logistics costs. From September 21, mainline railway tariffs will increase by 23.5%, raising export transport costs toward Saryagash by $2–3/t and domestic transport costs by around $1/t.

Tags: imports, restrictions, Russia, Kazakhstan, export, wheat