🌾 Daily Grain Price Increase: Wheat and Barley Rise on Global Markets

 

 🔹Export prices for wheat and barley on global markets continue to rise rapidly, reflecting on grain costs in Russia and Kazakhstan.

 🔹Kazakhstan's grain producers are gaining a competitive advantage due to rising global prices, which opens the potential for increasing prices in the domestic market.

 🔹Further price growth for barley and wheat is expected, which will significantly impact the grain market in the coming months.

Grain prices in Russia and Kazakhstan are rising rapidly following the harvest of 2024. After an initial period of decline associated with the new crop, the market has settled into a steady upward trend.

 Since the beginning of the harvesting campaign in July of this year, the export price for Russian wheat in the Black Sea region was $216 per ton, according to the International Grains Council. Considering logistics costs (around $90 per ton), the price of Kazakh wheat at that time was comparable to 61,000 tenge per ton. However, the current export price of wheat in the Black Sea has risen to $250 per ton, which, when converted to tenge, is now 78,000 tenge per ton.

 In line with export prices, the domestic Russian market is also seeing price increases. Currently, third-class wheat with 23% gluten content in the Omsk region is priced at 14,500 rubles per ton. With transportation costs (2,000 rubles per ton) and VAT, the price of Russian wheat in Kokshetau reaches 84,000 tenge per ton.

 Under these conditions, Kazakhstani producers are at a significant competitive advantage. Price offers from buyers in Central Asia are now at the level of 65,000 to 70,000 tenge per ton, based on Russian prices. There is potential for price growth up to 75,000 tenge per ton for wheat with 23% gluten content, as there are currently no alternative suppliers at such prices for these markets.

 A similar situation is developing with barley. Export prices for barley in the Black Sea region have risen to $206 per ton, with a further upward trend expected. In Kazakhstan, barley is currently shipped from the port of Aktau at $165-168 per ton, but experts predict it will rise to $175-185 per ton. Accordingly, the domestic price for Kazakhstani barley could rise to 55,000-60,000 tenge per ton, significantly higher than the current level of 47,000-50,000 tenge per ton.

 The increase in grain prices remains a key issue for producers and exporters in Russia and Kazakhstan, which could significantly affect both domestic and external markets in the near future.