Accumulated higher ending stocks seem to play with prices’ progress

June 8, 2017 at 8:40 AM , Starry Night Ltd.
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Exports seem frozen at that time of season while local demand is sluggish at best. Accumulation of higher stocks, before the start of the new harvest, is inevitable.

 The upcoming harvest looms on the horizon

The highest outputs of barley are produced from the Southeast region and the North regions, while smaller quantities are harvested from the Southwest and central South regions. Depending on the regions of the country, barley has been transforming from lactic ripeness stage to wax ripeness stage of maturity; and/or from wax ripeness stage to full ripeness stage of maturity. The higher the temperatures during the upcoming weeks, the quicker the acceleration of the crop to its full stage of ripeness.

Barley during marketing season 2016-17

SOFIA. The marketing season for barley, harvest 2016-17, is closing in the end of the month. This season barley has stood relatively weak on the international markets, with exports reaching 373,796mt by the end of last week, according to the Ministry of Agriculture. The export figure is the lowest in a row of three years, as regional competition and good domestic demand are among the factors of influence. Inevitably, higher accumulated stocks will be built at the start of the new harvest. Currently, remaining quantities amount to 44,712mt.

Harvest 2016-17

(01.07.2016 - 02.06.2017)

Carry over

4,900  mt

Domestic output

697,787 mt

Domestic consumption

299,900 mt

Exports to the world

373,796 mt

Average yield

3.9 mt/ha

Source: Bulgarian Ministry of Agriculture

The exhibited price trend of average monthly EXW purchasing prices, starting August 2016 until May 2017, has been a slow but firm upward ascend.

Barley, Bulgaria

Type

EUR/kg

feed barley

0.141

EXW Bulgaria

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