Barley: Faring under dark skies
October 20, 2017 at 2:21 PM ,
Starry Night Ltd.
Barley: Foreboding lower production for next season
BULGARIA. According to the Ministry of Agriculture, by the 12th of October 2017, estimated sowed acreages of barley stood at 41,537 ha. The number is 22.6% lower than planted acreages of the grain last year. There is still time before the final estimates of sowed acreages are released, but the market expects the cultivation of barley to further decrease on an annual basis. The reason is painfully clear: tough regional competition, which exerts downward pressure of local prices.
Besides, the harvest of barley starts first, in comparison with those of other locally cultivated grains such as wheat, rapeseed and corn; and as a result, farmers are compelled to sell the grain quickly – even before it has been stored in warehouses – so that they could empty space for the upcoming harvests of the other grains, as well as, receive fresh liquidity. Prices during harvest are lower!
In the clutches of the status quo
From the dynamics of trade and export activities of barley early in the season are left no traces. Competitive market pressure within the Black sea region froze exports for the last few weeks while domestic consumption is a few metric tons per week. The unloading of the grain will most probably happen slowly this marketing season as was the case during last year. Such market sentiments directly affect cultivation strategies, which in return affect output.
Harvest 2017-18 (01.07.2017 - 13.10.2017) |
|
Beg.availability, incl. carry over & imports |
655,451 mt |
Domestic consumption |
90,000 mt |
Exports to the world |
200,561 mt |
to EU markets |
185,332 mt |
to rest of the world |
15,229 mt |
Source: Bulgarian Ministry of Agriculture