Black Sea Export Issues Pressure Kazakh Grain Markets

Russian grain exports through the Black Sea are experiencing problems that are affecting markets in Kazakhstan and other Central Asian countries. The issues include damage to grain terminals in Novorossiysk and a weaker ruble, which have led to an increase in cheaper Russian wheat being offered via overland routes.

This has put pressure on Kazakh grain prices, with Russian wheat prices continuing to decline due to a large-scale harvest of the new crop. According to the Grain Union of Kazakhstan, a good harvest in southern Russia and the Volga region is increasing supply, while problems with Black Sea exports are pushing sellers to look for alternative markets.

The result is that offers of Russian wheat have increased substantially both in Kazakhstan and across other Central Asian markets. This is already affecting new-crop price formation in Kazakhstan, with prices declining across all wheat categories between August 10-16 due to cheaper offers of Russian wheat of comparable quality. Kazakh wheat export prices have also come under pressure, while export shipments remain relatively slow.