Bulgaria. Bullish trends on grain market continue

09.11.2016

During last week, Bulgaria’s domestic market of cereal crops saw a rise in purchase prices, reports UkrAgroConsult. The bullish factors for them included strong grain demand, both from traders and processing companies, along with appreciation of the Bulgarian currency against the US dollar.

Prices for Bulgarian milling wheat also continued growing in the export market. Over the week, export prices for 11.5%-protein milling wheat increased another $1-2. Strong import demand from European Union countries keeps supporting the export market. As before, another bullish factor is growth of export milling wheat prices in other countries of the Black Sea region. 

The most significant increase in prices was observed in the feed wheat market. As UkrAgroConsult noted before, almost all export availabilities of Bulgarian feed wheat has already been marketed therefore domestic supply has shrunk substantially. Exporting and milling companies having the greatest need for grain raised purchase prices considerably on the week under review to fill their grain shortages.

A similar situation is in the barley market. 80% of Bulgaria’s barley export potential has already been used and extremely limited stocks of this crop are still left in the country.

Domestic corn prices in Bulgaria continue growing despite harvest progress and new-crop grain arrivals. Due to a second year of corn crop failure in the EU, including Bulgaria, growers are not in a hurry to sell the harvested crop as they wait for more significant price upturn.

UkrAgroConsult believes this tendency will remain in the short term perspective due to logistical problems in other Black Sea countries (Russia and Ukraine).

 

UkrAgroConsult

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