Commodities Buzz: Kazakhstan Grain Crop To Reach Five- Years Lows

Commodities Buzz: Kazakhstan Grain Crop To Reach Five- Years Lows

Sep 25, 2019 04:09 IST capital market

Due to drought in Kazakhstans key grain growing regions, the grain crop in the country may fall to a five-year low.This drought has hit primarily the northern regions. Kostanay region, which hosts 26% of total acreage of grains (mostly wheat), suffered to the greatest degree. Due to dry weather in July, grain yield in the region plummeted by 43% from last year.

In addition, protracted rains that fell on the peak of harvest (August 25 to September 10) have already deteriorated the quality of grain and may increase its losses while conditioning. This years wheat crop will contain a larger share of feed grain. According to forecast, this will in turn lead to a more substantial drop in wheat and flour exports from Kazakhstan, because it is Kazakh milling wheat that traditionally attracts demand from importers.

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