Price of Kazakhstan wheat fell by $5 per ton
World wheat prices declined this week, with U.S. September futures closing at \$5.4 per bushel. Argentina cut export duties on grains, boosting market supply. Russia’s zero export duty continues to accelerate shipments. Kazakhstan expects a good harvest, and wheat export prices have fallen from \$215 to \$210 per ton.
World wheat prices are falling this week. Following trading on the US stock exchange on Monday, July 28, September futures closed at $5.4 per bushel ($198 per ton).
According to Andrey Sizov, director of the SovEcon analytical center, one of the reasons may be Argentina’s decision to reduce export duties on agricultural products, including corn, from 12% to 9.5%. At the same time, the duty on wheat remains at 9.5%.
“Reducing export duties will benefit not only agriculture, but the entire economy,” said Argentine President Javier Miley.
In Russia, the export duty (recalculated weekly) will remain at zero for the fourth week in a row from July 30. SovEcon notes the effect of this: exports are accelerating, and ruble prices are rising. Andrey Sizov predicts the Russian wheat harvest at 83.6 million tons against 82.6 million tons in 2024.
In Kazakhstan, farmers in the northern regions assess the harvest prospects as good – the weather in the first half of the summer was favorable, without extreme heat and with precipitation. Now farmers are waiting for rain for grain filling in early August, and also hope that the bad weather in September will not interfere with harvesting.
As for wheat prices in Kazakhstan, on July 28, class 3 wheat (25% gluten) was sold at 95 thousand tenge per ton (EXW delivery condition – from the elevator) on the ETS exchange.
For export during July, class 3 wheat (25% gluten) fell in price from $215 to $210 per ton due to the start of harvesting in the southern regions of Kazakhstan
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Source : Ukr Agro Consult
