According to the official statistics figures, in the second quarter of 2017 the production of wheat flour totaled 910 thsd tonnes, up 6% compared with the period of April-June of 2016 (858 thsd tonnes).
In the whole 2016/17 MY, the production of wheat flour in Kazakhstan totaled 3.86 mln tonnes, up 7.1% compared with the previous season volumes.
In April-June of 2017, the production of wheat groats decreased by 52% compared with the same period of 2016, and totaled 4.5 thsd tonnes only. According to the official statistics, in June 2017 the production volumes totaled 0.5 thsd tonnes, which became the minimum figure for the reporting month during five recent seasons.
Generally, in 2016/17 MY the production volumes of wheat groats decreased by 18%, and totaled 22.1 thsd tonnes.
According to the Customs Control Committee at the Ministry of Finance of the Republic of Kazakhstan, in April-June of 2016/17 MY the exports of wheat totaled 1 mln tonnes, which became the maximum figure for the reporting period during five recent seasons. Generally, in 2016/17 MY Kazakhstan supplied 3.7 mln tonnes of wheat on foreign markets, up 2.9% compared with the previous season.
In 2016/17 MY, Uzbekistan (1.7 mln tonnes) and Tajikistan (1 mln tonnes) traditionally became the main countries-importers of wheat from Kazakhstan. Afghanistan took the 3rd position with its share of supplies at 8% (293 thsd tonnes), but China almost reached the same position with its high purchases. And China imported 7% of the grain volumes (266 thsd tonnes). In July, NC Food Contract Corporation JSC and Chinese companies signed several agreements on the supply of Kazakh agricultural products to China, which will allow delivering large-scale grain volumes to the country.
Also, we should note Turkey among importers of Kazakh wheat. In June, the country imported 19.5 thsd tonnes of the grain, which became the maximum monthly figures during 3 recent seasons. Therefore, Turkey took the 6th position in the rating of countries-importers of wheat from Kazakhstan, and Azerbaijan moved down to the 7th position.
In April 2017, the market segment of milling wheat faced competing price trends. In most cases, offer/bid prices for 3-grade wheat remained unchanged. In turn, purchasing prices for 4-grade wheat slightly increased, due to the requirements of grain processors to urgently replenish their raw commodity stocks. According to market participants, agricultural producers declined the number of offers of 4-grade wheat. Also, it should be noted that adverse weather conditions somewhat supported the prices, because slowed down the work of market participants, and many access roads to granaries were flooded, which troubled the grain delivery to elevators. By the end of the month, bid prices for 4-grade wheat varied within the range of 41-44`000 KZT/t EXW.
On the export market, in the border crossing Saryagash there were no significant price changes. Only by the end of the month, offer prices for 4-grade wheat slightly increased, due to the domestic market impact, as well as the increased demand from major importers. Thus, by the end of the month offer prices for 4-grade wheat varied within 158-163 USD/t DAP.
In June 2017, there was observed rather mixed price dynamics in the market segment of milling wheat. So, in the beginning of the reporting month bid prices for 4-grade wheat continued steadily growing. At the same time, the demand for 3-grade wheat remained rather inactive. And the number of grain offers exceeded the demand level. We should note that grain producers almost did nor provide large-scale batches of high-quality wheat on the market. However, since the third ten-day period of June the market segment of milling wheat showed a bearish trend in terms of the usual seasonal factor. Thus, bid prices for 4-grade wheat varied within the range of 43-46`000 KZT/t EXW.
On the export market, in the border crossing Saryagash there were observed competing price trends. Thus, in the beginning of June 2017 offer prices for 4-grade wheat slightly increased due to rather high demand of buyers. At the same time, by the end of the month offer prices for the grain reduced to 169-174 USD/t DAP, due to reduction of the import demand rates. In the port Aktau, the prices did not face any significant changes and mainly remained at declarative level.