Russia: A ban on the import of Altai wheat to Kazakhstan may reduce its price

Wheat

Published Mar 19, 2024

Tridge summary

The price of Altai grain has been largely maintained by exports, but a proposed import limit by the Ministry of Agriculture of the Republic of Kazakhstan could negatively impact this. The export structure of Altai grain is diversifying, with wheat's share dropping from 80% to 60%, replaced by leguminous crops, buckwheat, and barley. Oilseed shipments abroad increased by 25% last year, reaching 621 thousand tons due to increased soybean and rapeseed sales. However, trade restrictions with Kazakhstan could limit the region's grain sales to 1.3 million tons out of a possible 2.2 million tons this season.

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Original content

The main factor in maintaining prices for Altai grain was export, says Alexander Chebotaev, chairman of the board of the regional association Agrosoyuz. But the Ministry of Agriculture of the Republic of Kazakhstan has prepared an order to limit the import of wheat into the country, which will negatively affect its price here. At the end of last year, sales abroad of Altai grain and leguminous crops increased by 9% and exceeded 1.1 million tons, and exports of oilseeds amounted to 500 thousand tons. In the first half of 2023, wheat exports were very rapid, but after the Kazakh authorities in April banned imports, first by road, and in October by rail (except for shipments to elevators and poultry farms), all grain exports slowed down and ultimately decreased by 20% compared to 2022. At the same time, the volume of grain exports to the Republic of Kazakhstan fell by half. As a result, the share of the Republic of Kazakhstan decreased from 79% to 62%, and China increased from 5 to ...

Source: Zol