Price at cost level: Akmola region farmers in no hurry to sell harvest

The volumes have been harvested, but the prices "make you want to cry." This familiar situation in the grain market is repeating this season in the Akmola region. According to respondents from Agrosearch, current demand prices are not encouraging them to make deals.

According to portal managers' surveys, farmers in the Akmola region are selling their harvest as needed. However, the majority plan to hold back volumes "until a favorable price," which they expect will not come until after the New Year, in January at the earliest.

Describing the situation, they note the market has slumped and "stalled." The demand price quoted by farmers in the Bulandy district is 55-60 thousand tenge per ton (including VAT) for 4th-class wheat, ex-farm. They are offered 70 thousand tenge (including VAT) to pick up the grain from the elevator. Respondents emphasize that when transport, loading, and unloading costs are factored in, there is no difference.

Farmers stress that back in October, the demand price was holding at 115-120 thousand tenge per ton of wheat. Now, according to farmers from the Ereymentau district, they are being quoted prices in the range of 74-76 thousand tenge per ton for the fourth class. By their estimates, this price is at the limit of the cost of production.

"They quote a price that makes you want to cry. The price for 4th class was 75 thousand with VAT, and now they aren't even offering that," says a respondent.

At the same time, they note they were expecting at least 80 thousand tenge per ton with VAT.

Some producers are forced to sell volumes at this price due to debt obligations that need to be paid, including those from previous seasons.
Producers from the Egindykol district note that in early November, the main demand is for fifth-class and feed wheat. This category of grain is eagerly bought by poultry farms. According to farmers from the Shortandy district, fourth-class wheat is not in demand.

However, despite the sluggish market, the vast majority of those surveyed plan to maintain their grain acreage at the same level next year as this season. Farmers note they are "used to" wheat, and for many, it is the main and "proven" crop. For example, respondents from the Korgalzhyn district say that "the land is such that you can't really experiment—other crops won't grow."