Increased Demand Drives Up Prices for Kazakhstan Barley

The recovery of demand for barley is stimulating noticeable price growth across both domestic and foreign markets in Kazakhstan. This was reported by Yevgeny Karabanov, head of the analytics committee of the Grain Union of Kazakhstan, while commenting on the current market trends within the republic's grain sector.

Following the results of the past week, barley on the domestic market rose in price by 1000 tenge per ton. The cost of the raw material settled in the range of 73,000 to 76,000 tenge per ton on an EXW-elevator basis in the Akmola, Kostanay, and North Kazakhstan regions, including 16% VAT. This price dynamic is driven by increased demand from feed flour producers and exporters focusing primarily on the Chinese market.

Export quotes for Kazakh barley have also strengthened across all delivery bases. According to the Grain Union of Kazakhstan, prices on a DAP Saryagash basis increased by 5 US dollars, reaching 215–220 USD per ton. At the DAP Dostyk and Altynkol bases, the increase was 7 US dollars, settling at 220–225 USD per ton, while on a FOB Aktau basis, prices rose by 5 US dollars to 215–220 USD per ton.

Meanwhile, the situation on the freight market in the Caspian region remained mixed last week. According to Sea Lines data (Dry cargo short sea freight market report), most charterers are targeting the level of 115 US dollars per ton for concluding contracts, while shipowners continue to request around 130 US dollars per ton for a voyage from Astrakhan to the northern ports of Iran.

As noted by Yevgeny Karabanov, the gap between the parties' proposals is widening against the backdrop of a fleet deficit. There is a shortage of available vessels not only for spot dates but also for the next couple of weeks, with many shipowners willing to offer tonnage only for late November or early December. At the same time, indicative freight rates in the Caspian Sea toward northern Iranian ports remain at previous levels: from Aktau at 90 USD/t and from Astrakhan at 125 USD/t.