Wheat: Under the strong market beat of exports, planted acreages are increased

November 6, 2017 at 11:18 AM , Starry Night Ltd.
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SOFIA. Aggressive export activities are depleting reserves fast on a weekly basis. Higher planted acreages so far.

BULGARIA. Harvest 2017-18 is characterized not only by its highest output, for at least a period of two decades, but also by the exceptionally high quality content of wheat within the Black sea basin. Exports started high early in the marketing season, as the leading shipments to EU countries go to Spain, Italy, Romania and Greece usually. The majority of export are shipped to EU markets.

Wheat: the strong demand shapes the way to future agri decisions

The export rate so far in the marketing season has been following a strong upward trajectory. According to local authorities, by the 27th of last month, total exports reached 2,329,338 mt, as the number represents 38.09% of total availability – 6,115,640 mt (aggregate output, imports and carry-over) of wheat for season 2017-18. Only via Varna seaport, the country shipped abroad 1,272,564 mt, as the figure is by 45.5% higher than shipped volumes by that time last year. Estimates of remaining stocks stood at 3,137,302 mt. Imports of wheat are generally limited.

The strong output this year, coupled with skyrocketing export activity since early in the season, seems to encourage farmers to act boldy in allocating future arable land for wheat. According to the Ministry of Agriculture, by the 26th of October 2017, planted acreages with wheat amounted to 824,827 ha, which on a year-to-year basis stands by 23.5% higher.

In the realm of prices

The high exports and domestic demand maintain prices strong. Although locally grown wheat is generally traded at lower levels than do grains from other export oriented countries within the Black sea region such as Ukraine and Russia, this year the high quality content of the locally harvested crop seems to prevent sudden price downfalls. Prices are expected to float around current levels in the short-term.

Wheat, Bulgaria

Type

EUR/kg

milling wheat

0.143

feed wheat

0.135

EXW Bulgaria

 

 

 

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