Kazakhstan: elevator prices for grain and oilseeds

On October 19 Kazakhstan's Ministry of Agriculture published the weekly trading-strategy recommendations for grain, oilseed and pulse growers prepared by the research bureau "Grain and Oilseed Crops. Kazakhstan". According to the bureau, prices are moving in different directions: white mustard has risen noticeably, while some flour mills are so far producing only feed flour and buying class 4 wheat.

Key figures

• Class 3 wheat: 90–106 ₸/kg
• Barley: 70 ₸/kg (+3)
• Soybeans: 193 ₸/kg
• Mustard: +32 ₸ in a week
• Sunflower — sell
• Class 3 wheat — "hold"

Grain prices

Average elevator prices including VAT at which new-crop contracts are signed: soft class 3 wheat with gluten of 28% and above — 106 tenge per kilogram (≈ $235 per tonne), with gluten up to 23% — 90 tenge (≈ $200 per tonne); class 5 wheat — 70 tenge (≈ $155 per tonne). Class 2 barley rose by 3 tenge in a week to 70 tenge per kilogram (≈ $155 per tonne). Durum wheat with protein of 14% and above — 98 tenge (≈ $217 per tonne), 15% and above — 109 tenge (≈ $242 per tonne).

Oilseeds and pulses

Flax — 178 tenge per kilogram (≈ $395 per tonne), sunflower — 162 tenge (≈ $359), safflower — 164 tenge (≈ $364), soybeans — 193 tenge (≈ $428). White mustard rose by 32 tenge in a week to 247 tenge per kilogram (≈ $548 per tonne). Yellow peas — 80 tenge (≈ $177 per tonne), large green lentils — 114 tenge excluding VAT (≈ $253 per tonne). Prices may vary by region, quality and delivery terms.

The bureau's advice

For class 3 wheat the bureau advises holding off on sales ("stop") while waiting for better prices: it puts the possible season high at 145 tenge per kilogram for grain with gluten of 28% and above and at 110 tenge for up to 23%. Sunflower and yellow peas are recommended for sale — the bureau sees no favorable outlook in the near term; the possible range for sunflower is 150 to 200 tenge. For the other crops the advice is to sell as needed. The authors stress that this is an opinion that may change.

What it means for buyers

Elevator prices are a benchmark for a farmer deciding when to sell the crop and how much working capital there will be by spring. The "stop" call on class 3 wheat means the bureau expects higher prices; for sunflower and peas it does not. Dollar figures use the official rate of the National Bank of Kazakhstan — 451.05 tenge per dollar.

Source: Ministry of Agriculture of the Republic of Kazakhstan