Barley Prices Rise in Kazakhstan

On Kazakhstan's domestic market, barley prices increased by 3,000 tenge per tonne over the past week, reaching 63,000–68,000 tenge per tonne. Demand for the crop is growing from both feed flour producers and exporters. Export prices for barley also increased, according to Yevgeny Karabanov, Head of the Analytics Committee of the Grain Union of Kazakhstan.

Over the week, export prices for barley increased by 5 USD/t on DAP Saryagash and FOB Aktau terms. On DAP Dostyk/Altynkol terms, the increase amounted to 2 USD/t. At the same time, shipments of Kazakh barley to China and Uzbekistan are becoming more active.

Meanwhile, exports to Iran remain stagnant due to an acute shortage of available vessels. Over the week, freight rates from Aktau to Iran's northern ports increased by 4 USD/t to 60 USD/t. Freight from Astrakhan rose by 9 USD/t to 94 USD/t. This is not the first increase in freight costs recorded recently.

Demand for Class 4 and Class 5 wheat is also increasing on Kazakhstan's domestic grain market, as their share in the new harvest remains low. Poultry farms and feed flour producers are actively purchasing wheat amid plans by the Ministry of Agriculture to tighten restrictions on imports of Russian wheat.

At the same time, wheat prices remained unchanged over the week despite competition from Russian grain. According to Yevgeny Karabanov, high-quality Kazakh wheat cannot be quickly replaced by Russian grain either on the domestic market or in foreign markets.

Despite offers of Russian wheat, importers continue to purchase Kazakh grain at current prices due to a lack of stocks. Russian wheat, meanwhile, continues to be supplied both to Kazakhstan and to Central Asian countries.

From September 7 to 13, domestic prices for Class 3 wheat ranged from 88,000 to 110,000 tenge per tonne depending on gluten content, on EXW terms including 16% VAT. Wheat with 23–24% gluten was priced at 88,000–92,000 tenge per tonne, wheat with 25–26% gluten at 90,000–94,000 tenge, and wheat with 27% gluten at 95,000–100,000 tenge. Wheat with 28–29% gluten was priced at 100,000–105,000 tenge, while grain with gluten content of 30% and above cost 106,000–110,000 tenge per tonne.

Class 4 wheat was offered at 83,000–87,000 tenge per tonne, while Class 5 wheat was priced at 79,000–83,000 tenge. Prices for all wheat categories remained unchanged over the week. Feed barley, by contrast, gained 3,000 tenge and reached 63,000–68,000 tenge per tonne. Flaxseed prices declined by 5,000 tenge to 180,000–185,000 tenge per tonne.

On the export market, prices for Class 3 wheat on DAP Saryagash terms also remained unchanged. Grain with 23–24% gluten was priced at 253–258 USD/t, wheat with 25–26% gluten at 255–260 USD/t, and wheat with 27% gluten at 259–263 USD/t. The price range for wheat with 28–29% gluten was 276–281 USD/t, while wheat with gluten content of 30% and above was priced at 287–291 USD/t.

The export price of Class 4 wheat stood at 245–250 USD/t on DAP Saryagash terms, while Class 5 wheat was priced at 236–240 USD/t. These prices also remained unchanged over the week.

Barley on DAP Saryagash terms rose by 5 USD/t to 190–195 USD/t, while on FOB Aktau terms it also increased by 5 USD/t to 195–200 USD/t. On DAP Dostyk/Altynkol terms, the price increased by 2 USD/t to 197–202 USD/t.

The wheat-barley feed mixture (feed flour) with a protein content of 12% and above was priced at 245–250 USD/t on DAP Alashankou/Khorgos terms, increasing by 5 USD/t over the week.