Bulgaria Wheat Prices Down on Good Crop, Ample Stockpiles

Business | July 30, 2014, Wednesday // 12:18
Bulgaria: Bulgaria Wheat Prices Down on Good Crop, Ample Stockpiles Photo by EPA/BGNES

Wheat prices for this year’s crop will be five to 10 percent lower compared to 2013, the Chief Executive Director of the Sofia Commodity Exchange (SCE) Vasil Simov said.

Simov told Bulgaria on Air TV channel on Tuesday that the fall in prices is supported by record high global output and stockpiles. A slight rise could be expected after September, when trade in bread wheat usually picks up, but generally there is a downward trend in global wheat prices at the moment due to ample supplies.

Bulgaria expects to reap 4.5-5.0 million tonnes of wheat this year, little changed from last year. With a total of 1.5 million tonnes to be allocated to domestic production of bread and animal feed Bulgaria will be able to offer about 3.0 million tonnes for exports, Simov commented.

Global wheat output for the current year is estimated at more than 705 million tonnes, higher than 630-640 million tonnes in previous years.

According to Simov, the lower wheat export capacity of Bulgaria’s Black Sea ports compared with the ports of Romania, Ukraine and Russia will constrain Bulgarian grain shipments.

Industry sources said earlier this month that a significant part of this year's Bulgarian wheat crop is expected to be exported through Romania after Romania won a wheat supply tender in Egypt in which Bulgaria was unable to participate.

Investor.bg quoted Radoslav Hristov from the National Association of Wheat Growers as saying that currently Bulgarian bread wheat sells at 280-300 BGN a tonne, lower than 330-340 BGN a tonne a year ago. Fodder wheat is trading 260-270 BGN a tonne versus 290-300 BGN same time last year.

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Tags: Bulgaria, wheat, wheat prices, Vasil Simov, Sofia Commodity Exchange, National Association of Wheat Growers
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