Corn: active domestic trade, slow exports

August 3, 2017 at 1:42 PM , Starry Night Ltd.
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Although this year’s planted acreages are close to that of the previous season, projected aggregate output is expected to be, by at least, 20% higher.

SOFIA. The weather forecast for August is mainly dry weather with some favorable rain showers in the end of the second ten-days period. Overall, the agro-meteorological conditions are expected to be favorable for the development of the crop.

One could not step twice in the same river

No season repeats itself. Last year’s droughts diminished national output. In addition, average purchasing prices at the beginning of the marketing season, according to the Ministry of Agriculture, started at about 0.138-0.140 EUR/kg EXW Bulgaria and on average moved within the range for a few months.

However, this season the weather has so far favored the crop throughout the whole country, with a few exceptions during the hailstorms last month. The prosperous weather will enhance the yield potential and as a result, farmers are expected on average higher production by as much as 20%; at other places even more.

The domestic market is the place to sell

Corn continues to be actively traded on the domestic market on a weekly basis, with exports remaining sluggish because of higher prices. However, although local farmers update their price strategies depending on regional market trends, local prices predominantly remain on the upper end. Even more, farmers expect prices to increase because of the adverse weather conditions in Western and Southeast Europe. Actually, the expected build-up of stocks before the new harvest begins seems not a concern for local farmers because projected global output will most probably be updated downward.

Harvest 2016-17

(01.09.2016 - 28.07.2017)

Carry over

400,000 mt

Domestic output

2,226,094 mt

Domestic consumption

1,107,000 mt

Exports to the world

957,607 mt

Source: Bulgarian Ministry of Agriculture

By the 28th of July 2017, remaining stocks stood at 668,955 mt.

Corn, Bulgaria

Crop

EUR/kg

corn

0.145

EXW Bulgaria

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