Prices remain firm
June 30, 2017 at 6:49 AM ,
Starry Night Ltd.
Harvest already began in some regions of the country, while farmers in the Northeast regions plan on entering the fields within a few days, just before the forecasted rain showers hit the country. Farmers from the North regions expect higher yields because of auspicious weather conditions this year.
Rapeseed: a hungry international market for the crop
SOFIA. The crop is mainly realized on foreign markets while domestic consumption is small on a yearly basis. Exports, skyrocketed by high demand for rapeseed since the beginning of marketing season 2016-17, this year have been quite strong. In addition, lower production within the countries of the Black sea region also had a positive effect on exports.
According to the Ministry of Agriculture, the majority of the crop goes to countries of the European Union such as Belgium, Germany, and France among others while smaller quantities go the countries from the rest of the world as Iran, for instance.
Harvest 2016-17 (01.07.2016 - 23.06.2017) |
|
Carry over |
70,000 mt |
Domestic output |
509,251 mt |
Imports |
33,743 mt |
Domestic consumption |
80,600 mt |
Exports to the world |
503,771 mt |
to EU countries |
465,266 mt |
to the rest of the world |
38,505 mt |
Source: Bulgarian Ministry of Agriculture
Developing trends in the Black sea basin exert influence on local market developments. According to the USDA report on agricultural production, this year Ukraine expects a rapeseed output of 2.1 mmt, which is 68% higher than it realized during the previous season. Even though regional outputs and export prices matter, this year’s national output is projected to be lower and as a result, farmers expect foreign buyers to quickly buy out the available crop from the new harvest.
Currently, rapeseed, new harvest, is sold for 0.335 EUR/kg EXW Bulgaria.
Rapeseed, Bulgaria |
|
Crop |
EUR/kg |
rapeseed |
0.335 |
EXW Bulgaria |