Grains - Grains

Bulgarian wheat: prices are stubbornly high, no relief in sight

March 7, 2017 at 9:51 AM , Starry Night Ltd.
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With the new harvest a few months away, local farmers started trading in green. A good export season left short supplies. As always, Black sea region prices matter.With the new harvest a few months away, local farmers started trading in green. A good export season left short supplies. As always, Black sea region prices matter.

Wheat: Prices remain on the high end, quantities diminish by the week

SOFIA. Prices of milling wheat and feedstuff wheat opened week 10 at 0,170 EUR/kg and 0.167 EUR/kg CPT domestic port, respectively. The price difference between both types of crop is just 2.56EUR/mt; a difference that compels farmers to allocate more land plot to feedstuff wheat rather than its counterpart. The majority of feedstuff wheat was exported in the first half of season 2016-17 while currently sufficient quantities of the crop are difficult to find, even to quench the demand on the domestic market.

Strong prices in the Black sea region exert influence on local ones

Beginning the past week, Russian milling wheat (12,5%) was traded for 195USD/mt FOB while at the end of the week, it stood at 192USD/mt. Usually, Bulgarian wheat is traded lower than its Russian counterpart. However, so far in the season, Russia still has excess of wheat, and if the country plans to increase its export rate, a general decrease in price would definitely affect prices in the Black sea region. Anyhow, standing a few months before the new harvest, local farmers have recorded a strong export season. According to the Bulgarian Ministry of Agriculture, by the end of the first week of March, available for trade quantities of wheat stood at 478,645 mt. However, a breaking point in the upper trend of local wheat could come from competitors in the Black sea region, which will have to consider the better harvests, as forecasted by the USDA, from Australia and Argentina.

Trading in green has resumed

Starting the beginning of March, local famers signed the first contracts for selling feedstuff wheat harvest 2017-18 on green. Closing the week, the crop from the upcoming harvest was traded for 0.145EUR/kg CPT domestic port.

Wheat, Bulgaria

Type

EUR/kg

milling wheat

0,169

feed wheat

0,166

CPT domestic port

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