July 11, 2012

Kazakhstan's wheat grain prices up in local market

Kazakh Agriculture Department Director Anna Buts told reporters in Astana on Tuesday (July 10) that the grain purchase prices for third grade wheat have risen on the Kazakh domestic market.

"According to the KazAgroMarketing, the purchase price in the domestic market of Kazakhstan for the third grade wheat in early July rose to US$155 per tonne, compared with US$124 dollars in January this year," Buts said.

She said all this contributes to increased demand for Kazakh grain and increase in its competitiveness in the markets.

"Therefore, the relevance of further subsidising transport costs for exporting grain is lost. In this regard, the Ministry will consider the possibility of elimination of export subsidies as from August 1 this year," the representative of the Ministry of Agriculture said.

Buts said that, in general, there is a tendency towards grain prices growth.

"In early July at the Chicago Board of Trade (CBOT), the price of one tonne of wheat has increased by US$29 and reached, as of July 7, US$298, at the Paris Mercantile Exchange (MATIF) - increased by US$18 to reach US$304," Buts said.