Issue 3567 - 29.09.2020
29.09.2020

Elbasy visits Turkestan

First President of Kazakhstan – Elbasy Nursultan Nazarbayev has arrived in Turkestan city.

According to the Twitter account, the First Kazakh President is to visit the newly built facilities in the city of Turkestan. Nursultan Nazarbayev has taken part in the opening of the international airport in the city of Turkestan, which is located 20 km away from the city and built in compliance with international standards and using state-of-the-art technologies.

The Turkestan international airport is the first airport to be built in Kazakhstan during the years of independence. The airport that takes the area of 900 he is set to be commissioned by the end of 2020. It is to service around 3 million passengers a year. It is also said that the region has developed the program aimed at increasing its tourist potential and number of tourists up to 5 million in 2025 by launching a direct flight from Turkestan to Mecca that ais to run every two days .

By Kazinform

Nursultan Nazarbayev gets familiarized with Turkestan further development plans

The Elbasy got familiarized with the Caravan Sarai complex and results of archeological research in the territory of Azret Sultan museum.

Besides, the Elbasy was briefed on the projects being implemented pursuant to realization of the tasks of President Kassym-Jomart Tokkayev set in August this year, the Elbasy’s official website reads.

Nursultan Nazarbayev stressed that the decision on revival of Turkistan was supported by the nation. The large-scale construction underway in Turkestan gives an impetus to the economic development of the whole region. The Elbasy also highlighted that the location of the city and its status as one of the most important spiritual centers of the Turkic world will pave the way for Central Asian integration. Nursultan Nazarbayev expressed confidence in further development and prosperity of the city and region. The Elbasy gave a briefing for journalists and surveyed the museum at the visit centre of the spiritual capital of Kazakhstan.

By Kazinform

Kazakhstan General

29.09.2020

EU, Kazakhstan Cooperation Committee mulls new plans

The EU is Kazakhstan's first trade and investment partner, representing over one third of Kazakhstan's external trade and over a half of total foreign direct investment in Kazakhstan. Kazakhstan is the first Central Asian country with which the EU signed an Enhanced Cooperation and Partnership Agreement (EPCA), which entered into...

The EU is Kazakhstan's first trade and investment partner, representing over one third of Kazakhstan's external trade and over a half of total foreign direct investment in Kazakhstan. Kazakhstan is the first Central Asian country with which the EU signed an Enhanced Cooperation and Partnership Agreement (EPCA), which entered into...

29.09.2020

Staff optimisation deprives more than 4 thousand people of jobs in Kazakhstan

Thousands of workers were laid off in Kazakhstan due to staff optimisation. This was reported by the Ministry of Labour and Social Protection of the Population. The department explained that since the beginning of 2020, labour relations have been terminated with 4.2 thousand employees due to a reduction in the...

Thousands of workers were laid off in Kazakhstan due to staff optimisation. This was reported by the Ministry of Labour and Social Protection of the Population. The department explained that since the beginning of 2020, labour relations have been terminated with 4.2 thousand employees due to a reduction in the...

29.09.2020

Authorities express concern over human trafficking in Kazakhstan

Shynar Kucherbayeva, a senior detective of the MIA Criminal Police Department told about human trafficking in Kazakhstan.

"The sums earned on this crime differ. If it is sexual exploitation, then from 50 000 tenge to several thousand dollars. There is a trade in newborns - it is about 2-3 thousand dollars,...

Shynar Kucherbayeva, a senior detective of the MIA Criminal Police Department told about human trafficking in Kazakhstan.

"The sums earned on this crime differ. If it is sexual exploitation, then from 50 000 tenge to several thousand dollars. There is a trade in newborns - it is about 2-3 thousand dollars,...

29.09.2020

Kazakhstan adds almost 60 new COVID-19 cases

Kazakhstan has added 58 new cases of the coronavirus infection to the overall caseload in the past 24 hours. East Kazakhstan region has again posted the biggest number of new COVID-19 cases.

Nur-Sultan city has registered 6 new COVID-19 cases, Almaty city 5, Shymkent city 1, the Akmola region 2, the...

Kazakhstan has added 58 new cases of the coronavirus infection to the overall caseload in the past 24 hours. East Kazakhstan region has again posted the biggest number of new COVID-19 cases.

Nur-Sultan city has registered 6 new COVID-19 cases, Almaty city 5, Shymkent city 1, the Akmola region 2, the...

29.09.2020

Kazakhstanis take more mortgage and consumer loans

The value of housing and consumer loans issued to Kazakhstanis continues to grow. As of September 1, 2020, individuals were given loans for 4.2 trillion tenge for personal purposes. This is 7.7% more than on the same date in 2019.

Most of all loans at the beginning of September were received...

The value of housing and consumer loans issued to Kazakhstanis continues to grow. As of September 1, 2020, individuals were given loans for 4.2 trillion tenge for personal purposes. This is 7.7% more than on the same date in 2019.

Most of all loans at the beginning of September were received...

Finance and Investment

29.09.2020

Healthcare becomes more important for investors in Kazakhstan

Over 8 months of this year, the value of investments in fixed assets in the country decreased by 4.3% on-year, and amounted to 7 trillion tenge.

Despite this, capital investments in the health and social services sector increased by the maximum in recent years 55.8%, in January-August of this year, 103.6...

Over 8 months of this year, the value of investments in fixed assets in the country decreased by 4.3% on-year, and amounted to 7 trillion tenge.

Despite this, capital investments in the health and social services sector increased by the maximum in recent years 55.8%, in January-August of this year, 103.6...

29.09.2020

Money transfers within Kazakhstan are back in positive territory after last year's fall by almost half

The value of funds sent through international money transfer systems in the country in January-July 2020 amounted to 26.7 billion tenge, 13% more than last year. In the same period a year earlier, on the contrary, there was a significant decline by 46.1%

The number of transactions increased 2.7 times, to...

The value of funds sent through international money transfer systems in the country in January-July 2020 amounted to 26.7 billion tenge, 13% more than last year. In the same period a year earlier, on the contrary, there was a significant decline by 46.1%

The number of transactions increased 2.7 times, to...

29.09.2020

State-owned companies of Kazakhstan step up spending on social services

From the information available in the public domain, it follows that the greatest additional social burden in the quasi-public sector is borne by the Samruk-Kazyna NWF and individual portfolio companies of this fund. In the annual report of the Fund, Chairman of the Board of Directors John Dudas emphasises that...

From the information available in the public domain, it follows that the greatest additional social burden in the quasi-public sector is borne by the Samruk-Kazyna NWF and individual portfolio companies of this fund. In the annual report of the Fund, Chairman of the Board of Directors John Dudas emphasises that...

29.09.2020

Kazakh Deputy PM chairs meeting on attracting investments

A weekly meeting on attracting investments was held under the chairmanship of the First Deputy Prime Minister of Kazakhstan, Alikhan Smailov.The meeting participants reported on the progress in achieving the target indicators for attracting investments.

Projects submitted by Almaty, Mangistau and Turkestan regions, ministries of agriculture, industry and infrastructure development, digital...

A weekly meeting on attracting investments was held under the chairmanship of the First Deputy Prime Minister of Kazakhstan, Alikhan Smailov.The meeting participants reported on the progress in achieving the target indicators for attracting investments.

Projects submitted by Almaty, Mangistau and Turkestan regions, ministries of agriculture, industry and infrastructure development, digital...

29.09.2020

Kazakh National Bank elaborates on currency exchange rate

The press service of the National Bank spread the comment of the monetary operations director, Nurzhan Tursunkhanov regarding the situation with the KZT exchange rate. It is reported that the tenge against the US dollar at the opening of trades on September 28 weakened by 0.38% to 428.20 compared to...

The press service of the National Bank spread the comment of the monetary operations director, Nurzhan Tursunkhanov regarding the situation with the KZT exchange rate. It is reported that the tenge against the US dollar at the opening of trades on September 28 weakened by 0.38% to 428.20 compared to...

29.09.2020

Kazakhstan Stock Exchange index falls on Monday by 0.09% to 2,429.49

Following the results of trades in shares on the Kazakhstan Stock Exchange on Monday, the value of the KASE index decreased by 0.09% from 2,431.72 to 2,429.49.

Value of deals in shares, included to the KASE index representative list, decreased against the previous trading day by 32.1% and amounted to KZT49.2mln...

Following the results of trades in shares on the Kazakhstan Stock Exchange on Monday, the value of the KASE index decreased by 0.09% from 2,431.72 to 2,429.49.

Value of deals in shares, included to the KASE index representative list, decreased against the previous trading day by 32.1% and amounted to KZT49.2mln...

29.09.2020

Weighted average dollar rate on the Kazakhstan Stock Exchange reaches KZT428.42

The weighted average dollar rate on the Kazakhstan Stock Exchange on September 28, 2020 at 17:00 amounted to 428.42 tenge. According to KASE information, the minimum rate at the trades amounted to 427.80 tenge per US dollar, the maximum to 429.20 tenge, closing rate to 428.50 tenge. The value of...

The weighted average dollar rate on the Kazakhstan Stock Exchange on September 28, 2020 at 17:00 amounted to 428.42 tenge. According to KASE information, the minimum rate at the trades amounted to 427.80 tenge per US dollar, the maximum to 429.20 tenge, closing rate to 428.50 tenge. The value of...

29.09.2020

Greenback holds on to strong position pending US updates

The dollar hovered near a two-month peak against a basket of currencies on Monday as doubts about economic recovery persisted before a barrage of economic data and political developments in the United States. A rebound in U.S. stocks on Friday has helped curb the ascent of the dollar, considered a...

The dollar hovered near a two-month peak against a basket of currencies on Monday as doubts about economic recovery persisted before a barrage of economic data and political developments in the United States. A rebound in U.S. stocks on Friday has helped curb the ascent of the dollar, considered a...

29.09.2020

Stock markets veer up following massive sell-off

Global equity markets surged and the dollar fell from two-month highs Monday as investors moved into the shares of beaten-down sectors on the heels of a sharp stock market sell-off the week before.

Asian shares gained, with Chinese shares boosted by data over the weekend showing China’s industrial firms grew for...

Global equity markets surged and the dollar fell from two-month highs Monday as investors moved into the shares of beaten-down sectors on the heels of a sharp stock market sell-off the week before.

Asian shares gained, with Chinese shares boosted by data over the weekend showing China’s industrial firms grew for...

Oil and Gas Sector

29.09.2020

Bailiff prevents illegal oil export from Kazakhstan

Many lawyers use judicial PR in their practice to achieve their goals. Unfortunately, some ministers of law do not shun black PR, in which, without a twinge of conscience, they easily blur the boundaries of morality and truth.

Recently on zakon.kz, an article by Dmitry Bratus was published under...

Many lawyers use judicial PR in their practice to achieve their goals. Unfortunately, some ministers of law do not shun black PR, in which, without a twinge of conscience, they easily blur the boundaries of morality and truth.

Recently on zakon.kz, an article by Dmitry Bratus was published under the formidable title...

29.09.2020

Kazakh oil swindler sentenced to 6 years

An enterprising resident of Semey presented himself as the owner of an oil business in Western Kazakhstan and offered to invest profitably. In fact, the profitable project turned out to be an ordinary financial pyramid. Farhat Zhenisov (hereinafter, the names and surnames have been changed) suggested Maksat Orazbekov to invest...

An enterprising resident of Semey presented himself as the owner of an oil business in Western Kazakhstan and offered to invest profitably. In fact, the profitable project turned out to be an ordinary financial pyramid. Farhat Zhenisov (hereinafter, the names and surnames have been changed) suggested Maksat Orazbekov to invest...

29.09.2020

Global oil inventories expected to drop below 5-year average in Q2 2021

OECD commercial oil inventories are expected to stand slightly above the five-year average through Q1 2021, before dropping below that benchmark for the remainder of the year, OPEC Secretary General Mohammed Barkindo said.

The projections are based on latest forecasts, which expect world oil demand in 2020 to contract by 9.5...

OECD commercial oil inventories are expected to stand slightly above the five-year average through Q1 2021, before dropping below that benchmark for the remainder of the year, OPEC Secretary General Mohammed Barkindo said.

The projections are based on latest forecasts, which expect world oil demand in 2020 to contract by 9.5...

29.09.2020

Brent steady as bug spectre sends shivers down markets

Oil prices were largely steady on Monday but on track for their first monthly fall since April as rising coronavirus cases continued to spur concerns about demand.

Brent crude slipped 3 cents to $41.89 a barrel by 1400 GMT. U.S. West Texas Intermediate was at $40.12 a barrel, down 13 cents...

Oil prices were largely steady on Monday but on track for their first monthly fall since April as rising coronavirus cases continued to spur concerns about demand.

Brent crude slipped 3 cents to $41.89 a barrel by 1400 GMT. U.S. West Texas Intermediate was at $40.12 a barrel, down 13 cents...

Metals and Minerals

29.09.2020

Bullion down, other precious metals gain under wait-and-see conditions

Gold eased on Monday as positive economic data from China boosted risk-sentiment, dimming the safe-haven metal’s allure, ahead of the first presidential election debate between U.S. President Donald Trump and Democratic rival Joe Biden.

Spot gold fell 0.1% to $1,858.55 per ounce by 1110 GMT. U.S. gold futures were down 0.3%...

Gold eased on Monday as positive economic data from China boosted risk-sentiment, dimming the safe-haven metal’s allure, ahead of the first presidential election debate between U.S. President Donald Trump and Democratic rival Joe Biden.

Spot gold fell 0.1% to $1,858.55 per ounce by 1110 GMT. U.S. gold futures were down 0.3%...

29.09.2020

Base metals except lead post moderate gains on China engine

Copper prices firmed on Monday as expectations of robust demand from top consumer China supported sentiment, but doubts about longer-term prospects and a jump in London Metal Exchange stocks capped gains.

Benchmark copper on the LME traded up 0.6% at $6,584.5 a tonne in official rings. Prices of the metal, used...

Copper prices firmed on Monday as expectations of robust demand from top consumer China supported sentiment, but doubts about longer-term prospects and a jump in London Metal Exchange stocks capped gains.

Benchmark copper on the LME traded up 0.6% at $6,584.5 a tonne in official rings. Prices of the metal, used...

Energy Industry

29.09.2020

EBRD, GCF & CIFs fund solar energy park in Kazakhstan

The European Bank for Reconstruction and Development is organising a new financing for the construction of a 76MWp solar plant in the Karaganda region of Kazakhstan, a leader in the development of renewable energy in Central Asia, with a total installed solar capacity of 216MWp.

The USD 42.6 million package provided...

The European Bank for Reconstruction and Development is organising a new financing for the construction of a 76MWp solar plant in the Karaganda region of Kazakhstan, a leader in the development of renewable energy in Central Asia, with a total installed solar capacity of 216MWp.

The USD 42.6 million package provided...

Manufacturing industry

29.09.2020

Kazakhstan and Tatarstan plan to jointly build factories

Kazakhstan has launched three projects in the automotive industry for 261 billion tenge. According to the information, negotiations were held in Kostanay between the head of the Cabinet of Ministers Askar Mamin and the President of Tatarstan Rustam Minnikhanov.

During the meeting, 3 joint projects were launched for 261 billion tenge....

Kazakhstan has launched three projects in the automotive industry for 261 billion tenge. According to the information, negotiations were held in Kostanay between the head of the Cabinet of Ministers Askar Mamin and the President of Tatarstan Rustam Minnikhanov.

During the meeting, 3 joint projects were launched for 261 billion tenge....

Trade and Consumer Goods

29.09.2020

Production of tobacco products in Kazakhstan increases by 10% on-year

As of the beginning of September, the cost of one pack of cigarettes in retail outlets was already 489 tenge, plus 12.7% on-year. A pack of cigarettes is the most expensive for residents of Aktobe at 534 tenge, Nur-Sultan at 521 tenge, and Taraz at 506 tenge. The cheapest are...

As of the beginning of September, the cost of one pack of cigarettes in retail outlets was already 489 tenge, plus 12.7% on-year. A pack of cigarettes is the most expensive for residents of Aktobe at 534 tenge, Nur-Sultan at 521 tenge, and Taraz at 506 tenge. The cheapest are...

29.09.2020

Germany, Denmark and Australia join meat processing in Kazakhstan

In Kazakhstan, together with foreign investors, it is planned to launch 5 meat processing projects for $127 million. A meat processing plant for $13 million is under construction in the Kostanay region. A Russian company is the investor of the project. The enterprise is expected to be launched in Q4...

In Kazakhstan, together with foreign investors, it is planned to launch 5 meat processing projects for $127 million. A meat processing plant for $13 million is under construction in the Kostanay region. A Russian company is the investor of the project. The enterprise is expected to be launched in Q4...

29.09.2020

EAEU reports structure of exports and imports of goods in foreign trade for January-July 2020

In the commodity structure of exports of the EAEU member states to third countries, mineral products prevail. This was stated in the review of the Eurasian Economic Commission On foreign trade in goods of the Eurasian Economic Union for 7 months of 2020.

Mineral products account for 58.2% of the total...

In the commodity structure of exports of the EAEU member states to third countries, mineral products prevail. This was stated in the review of the Eurasian Economic Commission On foreign trade in goods of the Eurasian Economic Union for 7 months of 2020.

Mineral products account for 58.2% of the total...

29.09.2020

Contribution of EAEU Union States to aggregate indicators of foreign trade reported

The review of the Eurasian Economic Commission On foreign trade in goods of the Eurasian Economic Union provides data on the contributions of the member states of the Union to the aggregate indicators of foreign trade for 7 months of 2020.

In the turnover of foreign trade, the share of Russia...

The review of the Eurasian Economic Commission On foreign trade in goods of the Eurasian Economic Union provides data on the contributions of the member states of the Union to the aggregate indicators of foreign trade for 7 months of 2020.

In the turnover of foreign trade, the share of Russia...

Agriculture

29.09.2020

Dynamics of prices for wheat, barley and flour in the domestic market of Kazakhstan EXW in September

Price dynamics in Kazakhstan on the basis of EXW Akmola region from 2 to 23 September 2020
Type of good September 2 September 23 Change, +/- Change, %
Wheat 27-30% 85500 89500 4000 104,7
Wheat, 3 grade 79500 87300 6800 109,8
Wheat, 4 grade 70700 78700 8000 111,3
Wheat, 5 grade 63100 63100 0 100,0
Barley 46800 50800 4000 108,5
Flour, h/g 130900 140900 10000 107,6
Flour, 1 grade 125400 133400 8000 106,4
Flour, 2 grade 104200 109200 5000 104,8
Price dynamics in Kazakhstan on the basis of EXW Akmola region from the end of December 2019 to 23 September 2020
Type of good December 2019 September 23 Change, +/- Change, %
Wheat 27-30% 83500 89500 6000 107,2
Wheat, 3 grade 78500 87300 8800 111,2
Wheat, 4 grade 64700 78700 14000 121,6
Wheat, 5 grade 57700 63100 5400 109,4
Barley 51700 50800 -900 98,3
Flour, h/g 134500 140900 6400 104,8
Flour, 1 grade 120000 133400 13400 111,2
Flour, 2 grade 103500 109200 5700 105,5
Exchange rate tenge/dollar 425.43. September brought a significant increase in cereal prices in the global futures and cash markets. This led to an increase in prices in local regional markets and in some countries of producers and exporters of grain crops. Kazakhstan did not stand aside either. From September 2 to 23, high-protein wheat of 27-30% increased from 85,500 to 89,500 tenge per tonne, by 4,000 tenge per tonne or by 4.7%, and grade 3 wheat 23% from 79,500 to 87,300 tenge per tonne, by 6,800 tenge per tonne or by 9.8%. Grade 4 food wheat increased from 70,700 to 78,700 tenge per tonne, by 8,000 tenge per tonne or by 11.3%, and grade 5 feed wheat did not change at 63,100 tenge per tonne. Barley for the period increased from 46,800 to 50,800 tenge per tonne, by 4,000 tenge per tonne or 8.5%. In the flour segment, all grades of flour increased in different proportions, and in the greatest dynamics the highest grade wheat moved up from 130,900 to 140,900 tenge per tonne, by 10,000 tenge per tonne or by 7.6%. Flour of the first grade increased from 125,400 to 133,400 tenge per tonne, by 8,000 tenge per tonne or by 6.4%, and second grade flour from 104,200 to 109,200 tenge per tonne, by 5,000 tenge per tonne or 4.8%. Compared to December last year, by September 23, all wheat has grown to varying degrees, and especially food wheat of the 4th grade. The smallest proportions of growth were found in high-protein wheat, 27-30%. Barley, on the contrary, decreased, but not significantly. In the flour group, its first grade became the growth leader, while the premium grade gained less than 5%. To a large extent, the annual increase is due to the fall in the tenge against the dollar. Sellers, to the best of their strength and capabilities, pulled up the prices for grain and flour to the world value equivalent. Over the last decade of August, the tenge dropped against the dollar. By August 20, its rate was 418.52 tenge per dollar, and on September 1 it dropped to 420.24 tenge per dollar, or by 0.41%. From September 1 to 24, the tenge against the dollar fell from 420.24 tenge per dollar to 425.43 tenge per dollar, or by 1.2%. Let's remind. In the first half of July, the tenge decreased against the dollar from 404.7 tenge per dollar as of June 30 to 412.95 tenge per dollar as of July 16, or by 2%. Further, in the second part of July, the tenge dropped against the dollar to 421.78 tenge per dollar as of August 1 and fell by another 2.1%. Only in August, the tenge began to rise against the dollar. From August 20 to September 2, wheat 27-30% fell from 87,000 to 85,500 tenge per tonne or 1.7%. But wheat of 3, 4, 5 grades and barley during this period did not change the price in tenge, but decreased in dollar by the percentage of the tenge's depreciation against the dollar. By last year, all wheat was up and barley was down. Flour of the highest grade fell in price from 131,900 to 130,900 tenge per tonne or by 0.8%, flour of the first grade from 126,400 to 125,400 tenge per tonne or 0.8%, and flour of the second grades from 105,200 to 104,200 tenge per tonne or 1%. Compared to last year, the price of premium flour has decreased, while the first and second grade flour has increased. On September 22, the state grain operator, Food Corporation, set the purchase prices for grain of the 2020 harvest. The total volume of purchased grain is up to 180,000 tonnes. Applications for participation in the procurement program are accepted on the website of Food Corporation and in regional offices. Food Corporation announces purchase prices for wheat grain Triticum aestivum L. Grades 3, 4 and barley grade 2, harvest 2020 for return under forward purchase agreements Wheat of the 3rd class with a gluten content of 23% and 11.5% of protein will be purchased at a price of 83 thousand tenge per tonne with VAT and at a price of 74.107 thousand tenge excluding VAT. Wheat with a greater proportion of gluten of 25% is estimated at 85 thousand tenge per tonne and 75.893 thousand tenge per tonne, respectively. High-protein wheat 14.5% with 27% gluten will be purchased at a price of 87 thousand tenge with VAT and at a price of 77, 649 tenge per tonne, excluding VAT. The lowest purchase price in the wheat segment is for 4th class wheat at 78 thousand tenge per tonne and 69.843 thousand tenge per tonne. As for barley, its price is even lower at 50 thousand tenge per tonne with VAT and 44.643 thousand tenge per tonne without VAT. Purchase prices for sunflower and buckwheat under forward deals will be set later by the time these crops are harvested. In September, the Agricultural Service/USDA in its report for Kazakhstan lowered the forecast of the initial and final wheat stocks in the 2020-21 season. In the September report, the Kazakh wheat balance has the following forecast. With the initial grain stocks of 0.69 million tonnes, 12.5 million tonnes will be produced, 0.2 million tonnes will be imported, 6.2 million tonnes will be spent on domestic needs, and 6.3 million tonnes for export. Ending stocks will amount to 0.89 million tonnes. The Agricultural Service/USDA in its August report revised preliminary forecasts for the production and export of wheat in Kazakhstan in the 2020-21 season. In the July forecast, wheat production in Kazakhstan amounted to 13.5 million tonnes. Compared to last season's figure, this one grew by more than 2 million tonnes from 11.452 million tonnes in the 2019-20 season to 13.5 million tonnes in the 2020-21 season. The wheat export forecast for Kazakhstan in the 2020-21 season in relation to the previous one has been increased by 800 thousand tonnes. Earlier it was 5.8 million tonnes, and in the June report of the USDA, the forecast for wheat exports reached 6.6 million tonnes. The July export forecast remained unchanged. In August, the USDA lowered its forecast for production in Kazakhstan for the 2020-21 season by 1 million tonnes from 13.5 to 12.5 million tonnes. But this is still almost 1 million tonnes more than last year. The forecast for wheat exports was reduced by 0.3 million tonnes from 6.6 to 6.3 million tonnes. This is less than last year. The highest wheat exports in the last four seasons were in 2018-19 at 8.78 million tonnes. The preliminary results of the harvest, which has not yet been completed, say that this year Kazakhstan can receive 19.4 million tonnes of grain in bunker weight, provided that the current yield is maintained and there are no adverse circumstances. In total, as of September 23, in Kazakhstan, according to operational information on the harvest of grain, regional agricultural departments harvested 14,837.2 thousand hectares or 94% and collected 18,226 thousand tonnes with a yield of 12.3 quintals per hectare. Rains in some regions of Kazakhstan continue to slow down the pace of grain harvesting. By September 23, the harvesting campaign slowed down in the Akmola region, in the Kostanay region and in the Turkestan region. In the Zhambyl and the West Kazakhstan regions, harvesting campaign issues have already been 100% completed. In the rest of the grain-sowing areas, the combines continue to move forward, but at a slow pace. This year, the pace of the harvesting campaign is much higher than last year's harvesting dynamics. But this does not mean that the gross grain harvest this year will be higher than last year's level. Perhaps the current harvest will not reach the final indicators of last year and exactly the level of last year's harvest-2018, when about 22.8 million tonnes of grain were obtained with an average yield of 15.2 quintals per hectare. By Alimbek Gabitov for Kazakh Zerno.

Price dynamics in Kazakhstan on the basis of EXW Akmola region from 2 to 23 September 2020

Type of good

September 2

September 23

Change, +/-

Change, %

Wheat 27-30%

85500

89500

4000

104,7

Wheat, 3 grade

79500

87300

6800

109,8

Wheat, 4 grade

70700

78700

8000

111,3

Wheat, 5 grade

63100

63100

0

100,0

Barley

46800

50800

4000

108,5

Flour, h/g

130900

140900

10000

107,6

Flour, 1 grade

125400

133400

8000

106,4

Flour, 2 grade

104200

109200

5000

104,8

Price dynamics in Kazakhstan on the basis of EXW Akmola region from the end of December 2019 to 23 September 2020

Type of good

December 2019

September 23

Change, +/-

Change, %

Wheat 27-30%

83500

89500

6000

107,2

Wheat, 3 grade

78500

87300

8800

111,2

Wheat, 4 grade

64700

78700

14000

121,6

Wheat, 5 grade

57700

63100

5400

109,4

Barley

51700

50800

-900

98,3

Flour, h/g

134500

140900

6400

104,8

Flour, 1 grade

120000

133400

13400

111,2

Flour, 2 grade

103500

109200

5700

105,5

Exchange rate tenge/dollar 425.43.

September brought a significant increase in cereal prices in the global futures and cash markets. This led to an increase in prices in local regional markets and in some countries of producers and exporters of grain crops. Kazakhstan did not stand aside either.

From September 2 to 23, high-protein wheat of 27-30% increased from 85,500 to 89,500 tenge per tonne, by 4,000 tenge per tonne or by 4.7%, and grade 3 wheat 23% from 79,500 to 87,300 tenge per tonne, by 6,800 tenge per tonne or by 9.8%. Grade 4 food wheat increased from 70,700 to 78,700 tenge per tonne, by 8,000 tenge per tonne or by 11.3%, and grade 5 feed wheat did not change at 63,100 tenge per tonne. Barley for the period increased from 46,800 to 50,800 tenge per tonne, by 4,000 tenge per tonne or 8.5%.

In the flour segment, all grades of flour increased in different proportions, and in the greatest dynamics the highest grade wheat moved up from 130,900 to 140,900 tenge per tonne, by 10,000 tenge per tonne or by 7.6%. Flour of the first grade increased from 125,400 to 133,400 tenge per tonne, by 8,000 tenge per tonne or by 6.4%, and second grade flour from 104,200 to 109,200 tenge per tonne, by 5,000 tenge per tonne or 4.8%.

Compared to December last year, by September 23, all wheat has grown to varying degrees, and especially food wheat of the 4th grade. The smallest proportions of growth were found in high-protein wheat, 27-30%. Barley, on the contrary, decreased, but not significantly. In the flour group, its first grade became the growth leader, while the premium grade gained less than 5%. To a large extent, the annual increase is due to the fall in the tenge against the dollar. Sellers, to the best of their strength and capabilities, pulled up the prices for grain and flour to the world value equivalent.

Over the last decade of August, the tenge dropped against the dollar. By August 20, its rate was 418.52 tenge per dollar, and on September 1 it dropped to 420.24 tenge per dollar, or by 0.41%. From September 1 to 24, the tenge against the dollar fell from 420.24 tenge per dollar to 425.43 tenge per dollar, or by 1.2%. Let's remind. In the first half of July, the tenge decreased against the dollar from 404.7 tenge per dollar as of June 30 to 412.95 tenge per dollar as of July 16, or by 2%. Further, in the second part of July, the tenge dropped against the dollar to 421.78 tenge per dollar as of August 1 and fell by another 2.1%. Only in August, the tenge began to rise against the dollar.

From August 20 to September 2, wheat 27-30% fell from 87,000 to 85,500 tenge per tonne or 1.7%. But wheat of 3, 4, 5 grades and barley during this period did not change the price in tenge, but decreased in dollar by the percentage of the tenge's depreciation against the dollar. By last year, all wheat was up and barley was down. Flour of the highest grade fell in price from 131,900 to 130,900 tenge per tonne or by 0.8%, flour of the first grade from 126,400 to 125,400 tenge per tonne or 0.8%, and flour of the second grades from 105,200 to 104,200 tenge per tonne or 1%. Compared to last year, the price of premium flour has decreased, while the first and second grade flour has increased.

On September 22, the state grain operator, Food Corporation, set the purchase prices for grain of the 2020 harvest. The total volume of purchased grain is up to 180,000 tonnes. Applications for participation in the procurement program are accepted on the website of Food Corporation and in regional offices.

Food Corporation announces purchase prices for wheat grain Triticum aestivum L. Grades 3, 4 and barley grade 2, harvest 2020 for return under forward purchase agreements

Wheat of the 3rd class with a gluten content of 23% and 11.5% of protein will be purchased at a price of 83 thousand tenge per tonne with VAT and at a price of 74.107 thousand tenge excluding VAT. Wheat with a greater proportion of gluten of 25% is estimated at 85 thousand tenge per tonne and 75.893 thousand tenge per tonne, respectively. High-protein wheat 14.5% with 27% gluten will be purchased at a price of 87 thousand tenge with VAT and at a price of 77, 649 tenge per tonne, excluding VAT. The lowest purchase price in the wheat segment is for 4th class wheat at 78 thousand tenge per tonne and 69.843 thousand tenge per tonne. As for barley, its price is even lower at 50 thousand tenge per tonne with VAT and 44.643 thousand tenge per tonne without VAT.

Purchase prices for sunflower and buckwheat under forward deals will be set later by the time these crops are harvested.

In September, the Agricultural Service/USDA in its report for Kazakhstan lowered the forecast of the initial and final wheat stocks in the 2020-21 season. In the September report, the Kazakh wheat balance has the following forecast. With the initial grain stocks of 0.69 million tonnes, 12.5 million tonnes will be produced, 0.2 million tonnes will be imported, 6.2 million tonnes will be spent on domestic needs, and 6.3 million tonnes for export. Ending stocks will amount to 0.89 million tonnes.

The Agricultural Service/USDA in its August report revised preliminary forecasts for the production and export of wheat in Kazakhstan in the 2020-21 season. In the July forecast, wheat production in Kazakhstan amounted to 13.5 million tonnes. Compared to last season's figure, this one grew by more than 2 million tonnes from 11.452 million tonnes in the 2019-20 season to 13.5 million tonnes in the 2020-21 season. The wheat export forecast for Kazakhstan in the 2020-21 season in relation to the previous one has been increased by 800 thousand tonnes. Earlier it was 5.8 million tonnes, and in the June report of the USDA, the forecast for wheat exports reached 6.6 million tonnes. The July export forecast remained unchanged.

In August, the USDA lowered its forecast for production in Kazakhstan for the 2020-21 season by 1 million tonnes from 13.5 to 12.5 million tonnes. But this is still almost 1 million tonnes more than last year. The forecast for wheat exports was reduced by 0.3 million tonnes from 6.6 to 6.3 million tonnes. This is less than last year. The highest wheat exports in the last four seasons were in 2018-19 at 8.78 million tonnes.

The preliminary results of the harvest, which has not yet been completed, say that this year Kazakhstan can receive 19.4 million tonnes of grain in bunker weight, provided that the current yield is maintained and there are no adverse circumstances.

In total, as of September 23, in Kazakhstan, according to operational information on the harvest of grain, regional agricultural departments harvested 14,837.2 thousand hectares or 94% and collected 18,226 thousand tonnes with a yield of 12.3 quintals per hectare.

Rains in some regions of Kazakhstan continue to slow down the pace of grain harvesting. By September 23, the harvesting campaign slowed down in the Akmola region, in the Kostanay region and in the Turkestan region. In the Zhambyl and the West Kazakhstan regions, harvesting campaign issues have already been 100% completed. In the rest of the grain-sowing areas, the combines continue to move forward, but at a slow pace.

This year, the pace of the harvesting campaign is much higher than last year's harvesting dynamics. But this does not mean that the gross grain harvest this year will be higher than last year's level. Perhaps the current harvest will not reach the final indicators of last year and exactly the level of last year's harvest-2018, when about 22.8 million tonnes of grain were obtained with an average yield of 15.2 quintals per hectare.

By Alimbek Gabitov for Kazakh Zerno.

29.09.2020

Grain stock dynamics in Kazakhstan

Grain stocks in Kazakhstan as of September 1, 2020
As of August 1 As of September 1 Change, +/- Change, %
Total grain crops  2 956 874 6011400 3054526 в 2,033 раза
  For food  2 398 250 4537200 2138950 в 1,89 раза
  For seeds   91 623 236500 144877 в 2,58 раза
  For forage   467 002 1237700 770698 в 2,65 раза
In August, new grain began to enter the barns of Kazakh agricultural producers at a higher rate, and grain stocks by the beginning of September increased more than 2 times. The harvesting campaign for this period has unfolded in all grain-growing regions, and its pace exceeded the last year's level. The largest increase in stocks occurred in the feed grain segment. The amount of grain for seed and food has increased significantly. Last year, during the August harvesting campaign, another 4,312.4 thousand tonnes of new grain were poured into the bins. But the total grain balance in 2019 increased in August in a smaller proportion from 3,468,869 to 5,106,469 tonnes, or by 47%. This situation is due to the earlier start of the current harvest. As a result, more grain was received in August this year, and grain stocks in 2020 by September 1 were higher than last year. By the beginning of 2020, as of January 1, 11,773,356 tonnes of grain were recorded in Kazakhstan, the volumes decreased in December by 1,398,783 tonnes or by 10.6%. By February 1, grain in the republic became 10,255,843 tonnes and its volume decreased by 1,517,513 tonnes, or 12.9%. As of March 1, the amount of grain in Kazakhstan decreased to 9,168,971 tonnes, by 1,086,872 tonnes, or 10.6%. As of April 1, 7,777,018 tonnes of grain were recorded in Kazakhstan, with a decrease in March by 1,391,953 tonnes, or 15.2%. By May 1, the volume of cash grain decreased to 6,943,067 tonnes, by 833,951 tonnes or 10.7%. As of June 1, grain volumes in Kazakhstan decreased to 4,505,095, by 2,437,972 tonnes. By the beginning of the new season, by July 1, 3,353,441 tonnes of grain remained in the republic, and stocks decreased by 1,151,654 or by 25.6%. During July to August 1, grain volumes decreased by 396,567 tonnes to 2,956,874 tonnes, or 11.8%, and in August grain stocks increased by 3,054,526 tonnes to 6,011,400 tonnes, or 2.033 times. Food grain in August to September 1 increased by 2,138,950 tonnes from 2,398,250 on August 1 to 4,537,200 tonnes on September 1, 1.89 times. The volume of seed grain increased by 144,877 tonnes from 91,623 to 236,500 tonnes, 2.58 times. The number of feed grains in August increased by 770,698 tonnes from 467,002 to 1,237,700, by 2.65 times. By Alimbek Gabitov for Kazakh Zerno.

Grain stocks in Kazakhstan as of September 1, 2020

As of August 1

As of September 1

Change, +/-

Change, %

Total grain crops

 2 956 874

6011400

3054526

в 2,033 раза

  For food

 2 398 250

4537200

2138950

в 1,89 раза

  For seeds

  91 623

236500

144877

в 2,58 раза

  For forage

  467 002

1237700

770698

в 2,65 раза

In August, new grain began to enter the barns of Kazakh agricultural producers at a higher rate, and grain stocks by the beginning of September increased more than 2 times. The harvesting campaign for this period has unfolded in all grain-growing regions, and its pace exceeded the last year's level. The largest increase in stocks occurred in the feed grain segment. The amount of grain for seed and food has increased significantly. Last year, during the August harvesting campaign, another 4,312.4 thousand tonnes of new grain were poured into the bins. But the total grain balance in 2019 increased in August in a smaller proportion from 3,468,869 to 5,106,469 tonnes, or by 47%. This situation is due to the earlier start of the current harvest. As a result, more grain was received in August this year, and grain stocks in 2020 by September 1 were higher than last year.

By the beginning of 2020, as of January 1, 11,773,356 tonnes of grain were recorded in Kazakhstan, the volumes decreased in December by 1,398,783 tonnes or by 10.6%. By February 1, grain in the republic became 10,255,843 tonnes and its volume decreased by 1,517,513 tonnes, or 12.9%. As of March 1, the amount of grain in Kazakhstan decreased to 9,168,971 tonnes, by 1,086,872 tonnes, or 10.6%. As of April 1, 7,777,018 tonnes of grain were recorded in Kazakhstan, with a decrease in March by 1,391,953 tonnes, or 15.2%. By May 1, the volume of cash grain decreased to 6,943,067 tonnes, by 833,951 tonnes or 10.7%. As of June 1, grain volumes in Kazakhstan decreased to 4,505,095, by 2,437,972 tonnes.

By the beginning of the new season, by July 1, 3,353,441 tonnes of grain remained in the republic, and stocks decreased by 1,151,654 or by 25.6%. During July to August 1, grain volumes decreased by 396,567 tonnes to 2,956,874 tonnes, or 11.8%, and in August grain stocks increased by 3,054,526 tonnes to 6,011,400 tonnes, or 2.033 times.

Food grain in August to September 1 increased by 2,138,950 tonnes from 2,398,250 on August 1 to 4,537,200 tonnes on September 1, 1.89 times. The volume of seed grain increased by 144,877 tonnes from 91,623 to 236,500 tonnes, 2.58 times. The number of feed grains in August increased by 770,698 tonnes from 467,002 to 1,237,700, by 2.65 times.

By Alimbek Gabitov for Kazakh Zerno.

29.09.2020

Kazakhstan harvests almost 15 million hectares of grain

As of September 25, in Kazakhstan, the regional agricultural departments harvested 14,919 thousand hectares or 94.5% and collected 18,418.8 thousand tonnes with a yield of 12.3 quintals per hectare. Last year, by this period, 10,965.1 thousand hectares or 71.9% were threshed and 12,195.2 thousand tonnes were threshed with a yield...

As of September 25, in Kazakhstan, the regional agricultural departments harvested 14,919 thousand hectares or 94.5% and collected 18,418.8 thousand tonnes with a yield of 12.3 quintals per hectare. Last year, by this period, 10,965.1 thousand hectares or 71.9% were threshed and 12,195.2 thousand tonnes were threshed with a yield...

29.09.2020

Kazakh Grain Union expects increased wheat export in 2020/21 MY

Kazakhstan will export about 6.7 mln tonnes of wheat (incl. wheat flour) in 2020/21 MY, up from 6.6 mln tonnes in 2019/20 MY, declared the council member of the Kazakh Grain Union Alexsander Malov within the online conference on September 28.

This forecast is based on the current estimation of wheat...

Kazakhstan will export about 6.7 mln tonnes of wheat (incl. wheat flour) in 2020/21 MY, up from 6.6 mln tonnes in 2019/20 MY, declared the council member of the Kazakh Grain Union Alexsander Malov within the online conference on September 28.

This forecast is based on the current estimation of wheat...

29.09.2020

Kazakh Grain Union opposes restriction on oilseed export

To load Kazakh oilseed processing capacities by means of any restrictions of oilseed export is inadequate, declared the representatives of the Kazakh Grain Union on September 25.

Some representatives of Kazakh processing enterprises support the idea of oilseed export restrictions or export tariff implementation. However, the Kazakh Grain Union considers it...

To load Kazakh oilseed processing capacities by means of any restrictions of oilseed export is inadequate, declared the representatives of the Kazakh Grain Union on September 25.

Some representatives of Kazakh processing enterprises support the idea of oilseed export restrictions or export tariff implementation. However, the Kazakh Grain Union considers it...

29.09.2020

US grain futures up on drought concerns

Chicago soybeans and corn futures ticked higher on Monday, with dry weather in key producers Brazil and Argentina underpinning prices, although pressure from U.S. harvest curbed gains.

Wheat edged higher after closing lower in the last session.

"A little rain in Argentina and Brazil over the weekend is useful – where it...

Chicago soybeans and corn futures ticked higher on Monday, with dry weather in key producers Brazil and Argentina underpinning prices, although pressure from U.S. harvest curbed gains.

Wheat edged higher after closing lower in the last session.

"A little rain in Argentina and Brazil over the weekend is useful – where it...

Communications and Transportation

29.09.2020

New flight between Ulaanbaatar and Almaty opened

On September 28, 2020, Ambassador Zhalgas Adilbayev, together with the leadership of the Executive Agency of the Government of Mongolia - the General Department of Civil Aviation and Hunnu Air took part in a press conference devoted to the introduction of the air access to the Ulaanbaatar – Almaty route,...

On September 28, 2020, Ambassador Zhalgas Adilbayev, together with the leadership of the Executive Agency of the Government of Mongolia - the General Department of Civil Aviation and Hunnu Air took part in a press conference devoted to the introduction of the air access to the Ulaanbaatar – Almaty route,...

29.09.2020

CEVA Logistics opens new hub in Kazakhstan

Further extending its capabilities across Central Asia, CEVA Logistics is opening a new office in Kazakhstan which will serve clients from across the region. The new office will also be the regional focus for customers in Uzbekistan, Turkmenistan, Tajikistan and Kyrgyzstan.

From headquarters in the Kazakh city of Almaty, the...

Further extending its capabilities across Central Asia, CEVA Logistics is opening a new office in Kazakhstan which will serve clients from across the region. The new office will also be the regional focus for customers in Uzbekistan, Turkmenistan, Tajikistan and Kyrgyzstan.

From headquarters in the Kazakh city of Almaty, the country’s largest metropolis,...

29.09.2020

Kazakhstan steps up railway frequency

The frequency of running of several passenger trains was increased in Kazakhstan.

JSC Passenger Transportation announces an increase in the frequency of the following passenger trains:

- №1 / 2 Almaty-2 - Shymkent - from 1 to 3 times a week, departure from Almaty-2 from October 10, from Shymkent - from October...

The frequency of running of several passenger trains was increased in Kazakhstan.

JSC Passenger Transportation announces an increase in the frequency of the following passenger trains:

- №1 / 2 Almaty-2 - Shymkent - from 1 to 3 times a week, departure from Almaty-2 from October 10, from Shymkent - from October...

29.09.2020

Eurasian National University, State Technical Service of National Security Committee of Kazakhstan sign cooperation agreement

Eurasian National University after L.N. Gumilyov and the State Technical Service of the National Security Committee of Kazakhstan signed a cooperation agreement, the purpose of which is to develop equal and mutually beneficial cooperation in such areas as technical and vocational training, scientific research, promoting the exchange of skills, the...

Eurasian National University after L.N. Gumilyov and the State Technical Service of the National Security Committee of Kazakhstan signed a cooperation agreement, the purpose of which is to develop equal and mutually beneficial cooperation in such areas as technical and vocational training, scientific research, promoting the exchange of skills, the...

Regional News

29.09.2020

Russia approves national economic recovery plan

The Russian government has endorsed a nationwide action plan for restoring employment and household profits, economic growth and long-term structural changes in the economy. More than 500 events are scheduled to be carried out by the end of next year. Some 5 trillion rubles ($64 bln) will be allocated to...

The Russian government has endorsed a nationwide action plan for restoring employment and household profits, economic growth and long-term structural changes in the economy. More than 500 events are scheduled to be carried out by the end of next year. Some 5 trillion rubles ($64 bln) will be allocated to...

29.09.2020

Coronavirus pandemic hits Russia’s middle class

The coronavirus crisis has forced 6.1% of middle-class Russians to slide into poverty, according to research carried out by the Higher School of Economics. The key causes of this were lost jobs and plunging revenues, experts said in their report "Russia in a new era: the choice of priorities and...

The coronavirus crisis has forced 6.1% of middle-class Russians to slide into poverty, according to research carried out by the Higher School of Economics. The key causes of this were lost jobs and plunging revenues, experts said in their report "Russia in a new era: the choice of priorities and...

29.09.2020

Rouble close to 80/$ as Russian equity strengthens

The Russian rouble fell to a near six-month low against the dollar on Monday, continuing its downward trajectory from the end of last week as rising coronavirus cases worldwide negatively impacted oil prices and reduced global risk appetite.

B y 0850 GMT, the rouble was 0.6% weaker against the dollar at...

The Russian rouble fell to a near six-month low against the dollar on Monday, continuing its downward trajectory from the end of last week as rising coronavirus cases worldwide negatively impacted oil prices and reduced global risk appetite.

B y 0850 GMT, the rouble was 0.6% weaker against the dollar at...

29.09.2020

China stocks strengthen further on strong industry performance

China's blue-chip index inched up on Monday, as industrial firms posted profit growth for a fourth straight month in August, pointing to a continued recovery in the world's second-largest economy from the coronavirus crisis.

The blue-chip CSI300 index rose 0.3%, to 4,581.91, while the Shanghai Composite Index slipped 0.1% to 3,217.53.

Profits at...

China's blue-chip index inched up on Monday, as industrial firms posted profit growth for a fourth straight month in August, pointing to a continued recovery in the world's second-largest economy from the coronavirus crisis.

The blue-chip CSI300 index rose 0.3%, to 4,581.91, while the Shanghai Composite Index slipped 0.1% to 3,217.53.

Profits at...

29.09.2020

China's industrial profits continue to see steady growth as economy firms up

Profits of China's major industrial firms maintained steady recovery in August as the production and operations of enterprises further improved, official data showed on Sunday.

Profits of China's major industrial firms totaled 612.81 billion yuan (about 90 billion U.S. dollars) last month, increasing by 19.1 percent year-on-year, data from the National...

Profits of China's major industrial firms maintained steady recovery in August as the production and operations of enterprises further improved, official data showed on Sunday.

Profits of China's major industrial firms totaled 612.81 billion yuan (about 90 billion U.S. dollars) last month, increasing by 19.1 percent year-on-year, data from the National...

29.09.2020

China, ASEAN expand trade relationship

China has been the largest trading partner of the Association of Southeast Asian Nations for 10 consecutive years.

Now, for the first time, ASEAN has become China's largest trading partner for the first eight months of this year, making the two sides one another's largest trading partner.

The total trade value between...

China has been the largest trading partner of the Association of Southeast Asian Nations for 10 consecutive years.

Now, for the first time, ASEAN has become China's largest trading partner for the first eight months of this year, making the two sides one another's largest trading partner.

The total trade value between...

Prices and Statistics

29.09.2020

Commodities

Date: September 29, 2020; Source: Bloomberg.com

...

Date: September 29, 2020; Source: Bloomberg.com

...
29.09.2020

Exchange Rates

Date: September 29, 2020; Source: the National Bank of Kazakhstan
1 US DOLLAR USD / KZT 428.35
1 EURO EUR / KZT 499.41
1 RUSSIAN ROUBLE RUB / KZT 5.44
1 CHINESE YUAN CNY / KZT 62.88
1 KYRGYZIAN SOM KGS / KZT 5.39
1 GREAT BRITAIN POUND GBP / KZT 552.14
1 CANADIAN DOLLAR CAD / KZT 320.53
1 AUSTRALIAN DOLLAR AUD / KZT 302.2

Date: September 29, 2020; Source: the National Bank of Kazakhstan

1 US DOLLAR

USD / KZT

428.35

1 EURO

EUR / KZT

499.41

1 RUSSIAN ROUBLE

RUB / KZT

5.44

1 CHINESE YUAN

CNY / KZT

62.88

1 KYRGYZIAN SOM

KGS / KZT

5.39

1 GREAT BRITAIN POUND

GBP / KZT

552.14

1 CANADIAN DOLLAR

CAD / KZT

320.53

1 AUSTRALIAN DOLLAR

AUD / KZT

302.2