The expert of Grain Union of Kazakhstan, head of the analytical committee Yevgeny Karabanov in his Telegram channel noted that last week sales activity on the market of agricultural crops remained low. And the reason for this was several internal and external factors.
“Now the market is trying to come to its senses after a long stagnation caused by the new requirements of the Tax Code, in terms of VAT refunds. Buyers are testing the domestic market with offers, but the number of transactions is low. In turn, the majority of agricultural producers are not ready to reduce prices for grain crops, and exporters do not want to work at a loss or at zero. Market participants continue to adapt to new conditions and are in search of new price points. At the same time, military actions in Iran have completely slowed down barley trade. And its resumption depends on their duration and internal political stability in this country”, – said the expert for inbusiness.kz.
The pace of grain shipment for export is still low. Among the main reasons, the expert calls the exporters’ offers of new higher prices. And importers, in turn, are trying to assess future prospects and do not seek to massively conclude contracts.
According to the data of the organization, the prices have decreased almost for the whole nomenclature of wheat. Prices for third class wheat (gluten 23-30+) decreased by $5/t, now they range from $260-315/t. Fourth grade wheat is trading in the $250-255/t range. Export “bid prices” for barley (DAP delivery basis) fell $5/t to $250-255/t. Due to the military force majeure, the deals are actually not realized. And the expert believes that the market will revive only if external factors stabilize.
