Kazakhstan to extend grain sales market

Aug 26. AgriMarket

Kazakhstan to extend grain sales marketKazakhstan will possibly extend own grains sales market, due to the grain export ban which Russia enforced, and grains export volumes limitations which Ukraine enforced, stated Daulet Uvashev, the Managing Director on commercial issues of the JSC National Company Food Contract Corporation (the grain purchasing operator to the State reserves), on August 21.

According to him, in the current MY the country will concentrate on trading with the countries of the Middle Asia, including Afghanistan and the South Caucasian region.

In the current year, grain export volumes to Afghanistan from Kazakhstan will possibly increase from 500-800 thsd tonnes to 1 mln tonne. Nearly 2 mln tonnes of grains and 2 mln tonnes of flour will be supplied from Kazakhstan on the market of the Middle Asia, stated D.Uvashev. Grain demands of Azerbaijan total 1.2-1.3 mln tonnes, Georgia – nearly 800 thsd tonnes. Kazakhstan is able to fulfill these volumes if Ukraine and Russia limit their supply volumes.

If Kazakh traders do not use the present situation, the South Caucasian countries will be looking for another supplier, noted he.

Besides, if the forecast about 8 mln tonnes as the export potential of Kazakhstan becomes real, then Kazakhstan will also supply nearly 1.5 – 2 mln tonnes of grains to Chelyabinsk and Omsk oblasts of Russia.

At the same time, according to D.Uvashev, it is early to talk about new crop grains purchasing prices, because the country still did not start the mass harvesting campaign. The situation will depend on different factors.

For example, the future price of the northern neighbor of Kazakhstan will also influence the domestic market of the reporting country. After Russia enforced own grain export ban due to the hard droughts, grain prices in Russia decreased from 200 to 185 USD/t. Last year, Kazakhstan grain production totaled 22.7 mln tonnes in bunker weight, and 20 mln tonnes in clean weight. According to the forecast of the Ministry of Agriculture, in 2010 grain production in clean weight in Kazakhstan will total nearly 13.5 mln tonnes.

To date according to the Ministry of Agriculture, the export potential of the country totals 8 mln tonnes.

As a reminder, in April 2010, the Ministry of Agriculture forecasted the export potential of the country for 2010/11 MY at the level of 12.5-13 mln tonnes.