Kazakhstan Wheat Exporters Speed Up Shipments Amid Rising Costs

Kazakh exporters are speeding up grain shipments and slashing prices in anticipation of increased rail logistics costs. Analyst Yevgeny Karabanov notes that logistics costs have already risen by 10-15%, or $3.5-5.5/t, and could increase by another $3-4/t after September 10 due to new tariffs on the country’s main railway network.

The Kazakh market is facing additional pressure from sharply lower Russian wheat prices. Problems with exports through Black Sea and Azov Sea ports, a large crop in southern Russia and the Volga region, and a weaker ruble are boosting Russian grain offers to Kazakhstan and other Central Asian markets.

Russian wheat of comparable quality is being offered at prices $10-15/t below Kazakh wheat. As a result, importers remain cautious about buying large volumes of Kazakh grain, expecting further price declines and hoping to secure cheaper wheat from Russia.