The October futures price of third class wheat at the ETS Commodity Exchange was nearly 25500 tenge per tonne. The January contract traded in the range of 26600 tenge per tonne. In 2012 the gross grain harvest is estimated at 14 million tonnes.
The rise in prices on the world commodity markets has an impact on the cost of Kazakhstan grain. As of July 19 the ETS futures price for third class wheat for October delivery was nearly 25 500 tenge per tonne. The January contract traded in a range of 26 000 per tonne. Analysts attribute the increase, which lasted for more than a month, to the situation on foreign markets.
Deputy Head, Forward Market Department, Eurasian Trading System Kanat Kussembayev: «In 2011 – 2012 marketing year wheat traded in the range of 9 and 6 US dollars per bushel in Chicago. The whole year was volatile and prices have been changing in the range from 9 to 6 US dollars. But as we have seen during the last five weeks the price is steadily growing. It has increased from 6 to 9 US dollars, and is currently trading at a price of 9.17 US dollars.»
Experts believe that the global drought and the debt crisis in the euro area, whose countries are major wheat consumers, also influenced the price change. Commenting on the situation in Kazakhstan experts also noted adverse climatic conditions which may affect the upcoming harvest.
Deputy Head, Forward Market Department, Eurasian Trading System Kanat Kussembayev: «First of all, I would like to note that the prices for wheat will be growing. Because climatic disasters that occur now suggest that the harvest will be difficult to assess. Jointly with state agencies agrarians are now taking all measures to maintain the harvest, and in the next marketing year, the sale of Kazakh grain will attain a new level of export turnover.»
According to the Statistics Agency, Kazakhstan stores more than 9.5 million tonnes of grain. This year the projected growth harvest is estimated at 14 million tonnes. To ensure food security, the Food Corporation plans to establish a reserve fund of 2.5 million tonnes of wheat. In such a manner, even in the worst-case scenario associated with drought and a sharp increase in grain prices, there is no reason for the rise in prices for flour and bread products in the country.