A shortage of grain on Kazakhstan’s domestic market has pushed prices higher and prompted flour millers and feed producers to increase imports of wheat from Russia, the Kazakhstan Grain Union said in a weekly market review.
According to the union, grain prices rose during the week of Jan. 19–25 amid active shipments and severe frosts in northern regions, which constrained supplies of class 3–5 wheat and barley. Market pressure was also intensified by farmers holding back sales in anticipation of further price increases.
Prices for class 4 and class 5 wheat increased by 6,000 tenge and 5,000 tenge per tonne respectively over the week, while barley rose by 2,000 tenge per tonne. At the same time, prices for some batches of high-protein class 3 wheat edged lower. Export quotations continued to climb, supported by steady demand from processors and exporters.
Against this backdrop, feed producers have begun actively importing lower-grade wheat from Russia. Yevgeny Karabanov, head of the analytical committee of the Kazakhstan Grain Union, said that even after value-added tax is included, import prices remain comparable to domestic levels, while VAT refunds after exporting processed products are easier to obtain. This, he added, is likely to keep grain and grain product prices elevated in the near term.
