June 17, 2011

Kazakhstan grain prices to fall on opening of grain exports in Russia

The cancellation of the export ban on grains in Russia will lead to reduction of prices for grains in Kazakhstan, said Asylzhan Mamytbekov, Minister of Agriculture of the Republic of Kazakhstan.

According to him, the additional offer volumes in the terms of the fixed demand will decrease prices. To date, the price is around KZT40-KZT42 (US$0.274-US$0.288) per tonne. Sometimes, the price reached up the level of KZT50 (US$0.343) per tonne, and after Russia started exporting flour, the price dropped, and the decline will continue, but the price will not lower less than US$200 per tonne, added the Minister.

As a reminder, the Russian Government decided not to renew the ban on grain exports after July 1, 2011.

The price of grains in Russia currently varies within the range of RUB5200-RUB5400 (US$184-US$192) per tonne.