Corn: Domestic consumption on the rise
January 19, 2018 at 5:00 PM ,
Starry Night Ltd.
BULGARIA. During harvest 2017-18, farmers collected 2,315,387 mt of corn or by 4.1% higher than output from the previous harvest, according to the latest released data by the Ministry of Agriculture. The higher production came from a higher realized average yield (9.9%) since combined acreages (400,255 ha) did not differ substantially from those of last year (418,136 ha). The reason for the much higher yield was favorable weather conditions in the few months preceding harvest. During last season, tough regional competition, resulting in sluggish exports, left carry-over of 580,000 mt as a starting inventory for the current season, and to an extent, discouraged farmers to increase sowed acreages for harvest 2017-18.
Corn: domestic consumption on the rise
According to local authorities, by the 12th of January 2018, corn used for the livestock sector reached 300,000 mt, which is by 21.46% higher on a yearly basis. Whenever the exports’ dynamics on the wheat markets have been vibrant, as has been the case since the beginning of marketing season 2017-18, local mills switch to corn. Corn is used for starch by the food industry, as well as, for ethyl alcohol production; as in total, the increase from these consumptions has been by 18.42% higher year-to-year. Although domestic consumption is forecasted to be much greater, when compared to that of last year, by the end of the current marketing season, local demand alone could not deplete remaining reserves.
|
Harvest 2017-18 (01.09.2017 - 12.01.2018) units in MT |
|
|
Beginning availability |
580,000 |
|
Aggregate output |
2,315,387 |
|
Imports |
5,683 |
|
Domestic consumption |
480,000 |
|
food & industrial usage |
180,000 |
|
feed |
300,000 |
|
Exports to the world |
657,316 |
|
to EU markets |
542,151 |
|
to rest of the world |
115,165 |
Source: Bulgarian Ministry of Agriculture
Regional competition matters
The primary export-end market is the countries of the EU such as Spain, France, Greece, among others. Despite quite a positive start on the export front since early in the marketing season, recently shipped volumes abroad could be characterized as sluggish, at best. Ample supply of corn within the Black sea basin is not to be discounted, at all; and, although not letting the lid on regional prices be knocked down at once, local ones, though unnecessarily depressed yet, have been incrementally adding value lately.
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