Wheat: Shipments to EU markets reach all-time high
March 15, 2018 at 1:03 PM ,
Starry Night Ltd.
BULGARIA. During the month of March, farmers start to inspect the general conditions of fields to determine the effects of the passing winter season and the early consequences for grains. Although, it is too early to formulate concrete projections yet for later in the season, current evaluations of conditions and agrarian needs will be made. According to farmers within the Northeast region, general conditions of the grains look quite good; indeed, the traits of these grains, whose farmers used fertilizers earlier in the season, are even better looking.
Wheat: Exports to the EU have never been stronger
Never have exports to the Union been so buoyant in recent years. According to the Ministry of Agriculture, by the 9th of March 2018, exports to EU markets totaled 3,128,914 mt, which on a year-to-year basis is by 37% higher than shipped volumes by that time last year. Major destinations for locally grown wheat are Spain, Italy, Portugal and Greece among others. During the last marketing season, active foreign trade and strong local demand till the very beginning of harvest 2017-18 depleted remaining stocks, leaving them at 179,000 mt. This year, the scenario could well repeat itself, although the recent aggregate output – 5.9 mmt is by 4.61% higher than that collected during the previous harvest.
|
Harvest 2017-18 (01.07.2017 - 09.03.2018) units in MT |
|
|
Beginning availability |
179,000 |
|
Aggregate output |
5,900,000 |
|
Imports |
53,952 |
|
Domestic consumption |
1,234,400 |
|
food |
683,000 |
|
feed |
348,000 |
|
Seeds |
180,000 |
|
industrial usage |
23,400 |
|
Exports to the world |
3,624,310 |
|
to EU markets |
3,128,914 |
|
to rest of the world |
495,396 |
Source: Bulgarian Ministry of Agriculture
At the end of the previous marketing season (31st of June 2017), total exports accounted to 4,168,623 mt -- the highest export figure for at least a decade -- while representing a share of 73.62% of national production. Annually, the country exports the majority of its locally collected milling and feed wheats since domestic demand is well covered by local production. What drags behind the rate of current exports though is the rate of shipments to non-EU markets. By that time last year, shipped volumes to non-EU markets accounted to 1,616,364 mt while currently, the number is just 459,396 mt. Both trends are expected to follow their individual trajectories during the month: those to EU markets, a steep climb; while those to non-EU ones, a suppressed rate because of competition within the Blacks sea basin.
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