Kazakhstan has already managed to sell more than half of the 5 million tons of non-grade wheat that the country received last fall due to rains during the harvesting period. Of course, domestic flour millers also “helped” here, mixing unclassified grain with high-quality grain.
Be that as it may, according to experts, today there are 2.2-2.5 million tons of idle grain left in the country. At the current rate of shipment (and internal processing), this entire volume may run out by the summer.
Understanding of this fact, as well as the resumption of shipments to China, led to an increase in export prices. If small traders in February offered low-grade grain to buyers in China for $170-175 per ton, then large exporters, capable of providing stable supplies of large volumes, contracted for $180 per ton.
But this price is no longer relevant; as of March, contracts are signed for $190-200.
The requirements for wheat sold at this price are that the proportion of starch is above 50%. At the same time, the share of sprouting does not matter; it is not important to processors. Of course, you need to pay attention to humidity. If it is not higher than 12.5%, this means that in the fall the wheat was dried to the desired condition, and it avoided molding, which means the accumulation of mycotoxins - the Chinese carefully check cargo for their content. Also, well-dried grain does not have a specific smell of fermentation, the presence of which is also noticed by buyers in China.
A big advantage of buyers from China for Kazakh exporters is that they make an advance payment for each contract. This is how working with China differs for the better from Central Asia, where the trader receives money only after delivery of the cargo.