Kazakhstan's farmers unlikely to receive a premium for high-gluten wheat

This season Kazakhstan harvested less wheat, but the gluten content of the grain is high. Farmers should probably not expect price premiums for quality. This is the view of Talgat Aldazharov, CEO of Aitas Agro, who gave an interview to ElDala.kz.

An unusual situation has developed on the market: demand for cheap grain is higher than for quality grain. Lower-class wheat is needed by feed flour producers, but such grain is scarce. According to the Ministry of Agriculture of Kazakhstan, practically the entire harvest is Class 3. Classes 4–5 account for only 7%.

According to the expert, quality is high everywhere, including in neighbouring regions of Siberia. "So far we do not see any particular price premium for high gluten," Talgat Aldazharov noted. Processors are actively seeking low-quality grain, so he expects a minimal price difference between Class 3 and Class 4.

Trading on the ETS exchange shows that Class 3 wheat with 23–24% gluten is currently offered at 95,000 tenge per tonne, and Class 4 wheat at 88,000 tenge. The spread between them may narrow even further.