Last week decrease in prices for milling wheat was noted in Kazakhstan export market primarily due to the seasonal factor.
Over the week export prices for milling wheat decreased in average by $11 in the Aktau port – to $185-191/MT FOB for wheat with 13.5% protein, and by $20-22 for 3rd grade wheat on DAF basis Russia – to $165-172/MT.
Downward trends on global market as well as massive harvesting of new grain crop put pressure on prices. Harvesting campaign of 2016 has started in grain-producing regions of Kazakhstan. Current grain yield is almost 30% higher than in 2015. This year a significant increase in wheat production in Kazakhstan is expected to reach a record level since 2011.
Traditional slow down in exports at the end of the season in August was another pressuring factor for Kazakh milling wheat prices. Old crop wheat stocks decreased significantly due to high pace of exports during 2015/2016 MY (by 37% lower than in 2015) and the grain of the new crop is undergoing the post harvesting procedures.
The pace of harvesting is the same compared to 2015, so increase in the wheat export can be expected in September-October. (UkrAgroConsult/Business World Magazine)
