July 17, 2012

Kazakhstan's grain export volumes to rely on Russian grain price

The Director of the Department of the Kazakh Ministry of Agriculture, Anna Buts, said that the country's grain export volumes in Iran-South Caucasus direction will depend on the Russian grain price.

"As for the forecasts in terms of our exports of grain in Iran - South Caucasus direction, it will all depend on the price of Russian grain. Thus, Azerbaijan and Georgia mainly buy the Russian grain, and if it is expensive, there will be more demand for our grain," Buts said.

She said in the Iranian direction annually exports traditionally amount to about one million tonnes of grain, to Azerbaijan and further to Georgia - about 800,000 tonnes of grain annually.

On the cash market price of one tonne of Russian wheat in early July increased by US$60.

Thus, as predicted by the Russian Ministry of Agriculture crop in the current year is estimated at 85 million tonnes, or 10 million tonnes less than in 2011.

"This year's harvest in Russia began 10 days ahead of time, grain yield is 27.2 quintals per hectare compared to 48 quintals per hectare last year. Grain crops in South and Central Federal Districts were especially hit hard," Buts said.

She said that in the Saratov region wheat yield is 7-10 quintals per hectare with mean annual rate of 20 quintals per hectare.

"Conducting harvest in the South and the North Caucasus Federal Districts is strongly impeded by raining. Agricultural crops in the Kuban region were badly damaged by flooding," she said.