Analysis of the wheatmarket
It is observed a trend of the price of the wheat market in October.Тhere were expectations that the intervention of DA "DRVVZ” through the purchase of wheat will lead to stabilizedthe prices,but it is nothappened .The bought 20 000 tones of wheat for recovery Stocks in the middle of the month was 260 euro price / item, which is 20 per item less than the purchase of 24 600 t. wheat at the beginning of the month. It was made a detailed comment on the price of wheat by Christo Milenkov-Chairman of State Committee on stock exchanges and markets in an interview in newspaper “Cash” on the 17th of October in 2008.It was pointed out that against the background of the crisis last price when it was up to 500 euro per tone of wheat, this year's prices are measured by the manufacturer as much less .In advance, the expectations for the harvest in 2008were within 3.5 million tons, which was expected price within 290-300 lv. tones .In situation that theagro statisticsaccounted for 2008 year a harvest for4.4 million tons and the background of high yields of wheat in the world and that the harvest is good at EU prices that come to our market areаequated. Before two months the price of the wheat аt the exchange in Budapest was 300 BGN for ton. Beforemonth fell to 280 euro, now it isaround 246 euro and the price of feed wheat fell below 200lv.t.-190 lv.
We alone canunderstand that the manufacturers would like at good prices, but buyers will buy in Bulgaria or Hungary but it is almost the same because the shipment in the Danubeis fast and cheap.So the arguments for dramatic price rises for the fuel or fertilizers are correct, but they rise everywhere and we have no reason to want any special treatment. .
Do not forget the direct payments to EU producers. Each hectare planted with wheat receive 15-20 euro, so with an average yield of 330 kg,will have an additional subsidy per ton production of about 60 lv.If we speak really for the quality, this is not a speculation.
Thesingle grain is withlow quality 65-70% of its third category. If we speak really the Bulgarian grain which isexported goes mainly to feed purposes,becauseMorocco and Tunisia, where large quantities went and throughout the Middle East, bought it for feed use.
Hristo Milenkov said that theissues of quality wheat to be discussed, both in terms ofthe sorts structure of sowing wheat, and in terms of weather occurred changes.The manufacturesultimately have to decide what they want to produce - large amounts of wheat or quality wheat.At this way of thinking concludes that manufactures must thinkto reflect on these issues and not offend by low prices.
Bulgarian farmer is laborious, but there is a "shopsko" attitude towards the information.
Hismarket information is very poor.He lives with the hope that at the last moment the lottery ticket will come.He prefers to make deals by four eye that’s why at the moment a lot of deals are at the court subject and they are not paid. There is no guaranty,there are no contracts.He has to learn too much.
The last week the price of the wheatsale of the stock exchanges is the level of 280 lv/t, but no deals were made. On the spot market transactions have significantly lower prices within of 220-240 lv/ton.