3rd class grain becomes cheaper in Kazakhstan

Prices for high-quality wheat began to decline after rapid growth. The reason is said to be weak demand and the arrival of cheaper Russian grain on the market.

According to information from the official representative of the Grain Union of Kazakhstan, Evgeny Karabanov, the price of grade 3 wheat began to decline. The main factors influencing this are weak demand and low exports of grain and flour. Competition from cheap Russian flour in the export markets of Central Asia and Afghanistan is also having a negative impact on demand and prices.

In addition, cheaper Russian wheat began to enter the domestic market of Kazakhstan. The difference in prices for class 3 wheat is 18-20 thousand tenge/ton, including VAT. This has led to the emergence of a large amount of Russian flour, which is actively reducing prices on the market.

Market participants also note that price increases are most likely no longer expected. Flour prices have begun to fall, and many traders are forced to reduce prices for their products. For example, the first grade of flour is now sold at a price of 170 to 175 tenge.

Traders emphasize that lower prices for wheat and flour are a necessary reaction to the current market situation. They note that this gives them the opportunity to offer consumers more favorable terms, which could stimulate demand for wheat products.

In general, the decline in prices for high-quality wheat in Kazakhstan is due to weak demand and the entry of cheaper Russian grain into the market. This creates competitive advantages for consumers and traders, but at the same time requires analysis and adaptation of strategies for producers in this sector.

Despite the current situation, experts note that wheat still remains one of the key agricultural products in Kazakhstan and demand for it remains stable in the long term. It is important that market actors adapt their strategies to current changes and are prepared to compete in international markets.