Due to the deficit of high-quality wheat in Russia in the current year, the grain of Kazakh origin will be in great demand in Russia, especially in eastern regions of the country. Due to exchange rate differences, Kazakh wheat will demonstrate more interesting prices, the Deputy Director of the strategic management department at Rusagrotrans CJSC Igor Pavensky announced.
According to him, in the eastern part of the country, primarily in Siberia, the factor of Kazakh wheat with high gluten content will make strong downward pressure on Russian wheat prices.
Referring to Kazakh experts, Pavensky said that in the current year the grain harvest in Kazakhstan might reach 17 million tons against 13.75 million tons in 2015. The grain surplus is expected to reach 3 million tons.
The reporting grain volumes will lead to increased exports from Kazakhstan. Also, the Kazakh grain will come to the regions of the Southern Urals and Siberia in terms of strengthening of RUR/KZT exchange rates. Pavensky added that in 2016/2017 MY the exports of Kazakh wheat would reach 7.5 million tons against 4.6 million tons last season.
Also, the harvesting campaign in the Siberian and Ural Federal District sets the trend for further lowering of prices. At the same time, in the European part of the country the grain prices continue rising in terms of low-scale selling of large-scale grain volumes by grain producers. (APK-Inform/Business World Magazine)