News
02.09.2010
Bulgaria's New Wheat Sales Doubled in 2010 on Russian, Ukrainian Drought
Bulgaria’s exports of new-crop wheat and barley doubled this year after Russia and Ukraine curbed grain sales as drought and bad weather damaged their crops, said Radoslav Hristov, president of the Grain Producers Association.
Bulgaria exported 600,000 metric tons of new-crop wheat this summer, double the amount sold a year ago, Hristov said in an interview today.
The harvest and growing season, which is 100 percent complete, reaped some 3.7 million tons of wheat this year and 780,000 tons of barley, according to the agriculture ministry. Bulgaria’s wheat exports will reach as much as 1.6 million metric tons this year, after 1.1 million tons a year ago, Hristov said. The bulk of the grain was shipped to Italy, Spain, Egypt, Syria, Iran and Vietnam.
“Wheat prices rose by 50 percent in the Black Sea region after Russia and Ukraine halted sales,” Hristov said. “Exports were boosted by new clients in Israel and South Korea.”
Bulgaria shipped abroad some 300,000 tons of barley as domestic demand shrank, Hristov said.
“High demand for barley abroad has practically depleted storages,” Hristov said. “Domestic demand for barley was very low this year as livestock breeders bought small amounts and beer breweries bought very little as their output has declined.”
Russia has banned grain exports to preserve domestic supplies after a drought. Ukraine said on Aug. 18 it will limit sales to foreign buyers. Russia and Canada were the second- biggest wheat shippers last year, while Ukraine was the fifth largest. Wheat futures have gained 50 percent since the end of May as crop prospects dimmed in Russia and Canada.
bloomberg
