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Bumper grain harvest in Kazakhstan and its large export capacity could cause a sharp dvie of grain and flour prices in Siberia, Russia, in the beginning of 2012, Kommersant writes. “Kazakhstan is currently facing a deficit of transport for grain export because the train cars are being used to transport grain to elevators inside the country. But starting from the beginning of 2012 the railroad cars will become available and Kazakhstan grain and flour will flood the Russian market and first of all the Siberia's market,” head of Altai Grain-Processor’s Union Viktor Fominykh said. Yuriy Titov, Director General of one of Siberia's major grain-processors Klyuchevskiy Elevator, said that flour prices in Altai had already started to go down. According to him, in the past two weeks flour price had dropped by an average of 1,000 rubles ($30) per a ton to 6-7.5 thousand rubles ($190-235) per a ton of first class flour. However, Russian Agriculture Ministry has stated that there is no threat to the markets, because Kazakhstan will not be able to increase grain and flour export to Russia because of logistics restrictions. “Logistics is very poor in Kazakhstan: there is a huge deficiency of grain carrying wagons. And the situation will not be resolved in the new year: they will not get any new wagons and part of Russian grain-carriages will have to go back to Russia,” official representative of the Ministry Oleg Aksenov said.
Bumper grain harvest in Kazakhstan and its large export capacity could cause a sharp dvie of grain and flour prices in Siberia, Russia, in the beginning of 2012, Kommersant writes.
“Kazakhstan is currently facing a deficit of transport for grain export because the train cars are being used to transport grain to elevators inside the country. But starting from the beginning of 2012 the railroad cars will become available and Kazakhstan grain and flour will flood the Russian market and first of all the Siberia's market,” head of Altai Grain-Processor’s Union Viktor Fominykh said.
Yuriy Titov, Director General of one of Siberia's major grain-processors Klyuchevskiy Elevator, said that flour prices in Altai had already started to go down. According to him, in the past two weeks flour price had dropped by an average of 1,000 rubles ($30) per a ton to 6-7.5 thousand rubles ($190-235) per a ton of first class flour.
However, Russian Agriculture Ministry has stated that there is no threat to the markets, because Kazakhstan will not be able to increase grain and flour export to Russia because of logistics restrictions.
“Logistics is very poor in Kazakhstan: there is a huge deficiency of grain carrying wagons. And the situation will not be resolved in the new year: they will not get any new wagons and part of Russian grain-carriages will have to go back to Russia,” official representative of the Ministry Oleg Aksenov said.
