Shortage of quality wheat in Kazakhstan drives up prices

Kazakhstan is experiencing a significant shortage of high-quality wheat, which is causing a sharp increase in prices on the domestic market. According to the Grain Union of Kazakhstan, last week, grade 3 wheat rose in price by 1,000–7,000 tenge per ton, depending on the grade, while grades 4 and 5 wheat fell slightly or remained unchanged. The highest increase was observed in grade 30+ wheat — by 7,000 tenge per ton.

The increase in refinancing rates by the National Bank of the Republic of Kazakhstan to 18% increased the tenge exchange rate, but this did not restrain the growth in grain prices. Demand for high-quality wheat remains high due to its shortage, and the higher the grade of grain, the more noticeable the increase in its cost.

Analysts note that grain quality is not improving: the share of grade 4 and 5 wheat in the harvested crop continues to grow. This creates additional pressure on the market, stimulating price increases in both domestic and foreign markets due to shortages and higher logistics costs.

According to the Grain Union, from October 6 to 12, prices for grade 3 wheat ranged from 86–90 thousand tenge per ton for grade 23–24% to 133–137 thousand tenge per ton for grade 30+. Grade 4 wheat traded at 75–78 thousand tenge, and grade 5 at 67–70 thousand tenge per ton. Prices for feed barley were 73–77 thousand tenge per ton, and flaxseed was 230–235 thousand tenge.

1,000 tenge = 1.86 US dollars

Tags: Kazakhstan, prices, wheat