Rapeseed: the market is seemingly slowing down
August 3, 2017 at 8:52 AM ,
Starry Night Ltd.
Rapeseed: lower output, lower yield, lower than expected trade activity
SOFIA. Rapeseed has become the export-oriented crop since the great majority of it is exported to foreign countries; domestic consumption on a yearly basis is small. However, it seems that after farmers executed their contractual obligations early in the marketing season, trade activity is slowing down.
Market players hold the crop, expecting a higher price in the short-term. Farmers from the Northeast forecast rapeseed, having high oil content, to reach as much as 0.383 EUR/kg EXW Bulgaria by the middle of August 2017. However, developments in the Black sea region could cool off their short-term strategies. Soon, the most recent export figures will stand as a proof.
Harvest 2017-18 (01.07.2017 - 28.07.2017) |
|
Carry over |
25,000 mt |
Domestic output |
432,847 mt |
Domestic consumption |
6,400 mt |
Exports to the world |
73,000 mt |
Source: Bulgarian Ministry of Agriculture
Anyhow, this year’s output is expected to be lower, by as much as 10-12% from the previous one, which should additionally support the price. According to the Ministry of Agriculture, by the 27th of July 2017, farmers combined 94% of total available acreages for harvest, reaching an estimated output at 432,847 mt. The estimated yield so far is calculated to be 2.85 mt/ha while that of last year stood at 2.97 mt/ha. Last year’s aggregate output was 509,251 mt.
Rapeseed, Bulgaria |
|
Crop |
EUR/kg |
rapeseed |
0.358 |
EXW Bulgaria |