August 2, 2010

Bulgaria exports more wheat on price surge

A surge in wheat prices has boosted wheat exports from Bulgaria and the country's exports for July are expected to reach 115,000 tonnes, compared with 85,000 tonnes in the same month a year ago.

Bulgaria has exported 51,000 tonnes of wheat from its new crop, mainly to Spain, Italy and Portugal, and another 110,000 tonnes are being loaded, an official familiar with shipping data said on Thursday (Jul 29).

Severe drought and torrential rains have cut into crops in the major grain-growing region around the Black Sea.

The country's farm ministry has said the 2010 wheat crop will be around 3.5 million tonnes, down from last year's four million tonnes due to extensive rains that have damaged some of the fields and significantly decreased yields.

Farmers see the crop at about 3.3-3.4 million tonnes. Despite the expected lower harvest, farmers and traders said Bulgaria's wheat exports may match last year's exports of 1.4 million tonnes, if demand remains high and prices attractive.

Some 48,000 tonnes of wheat bound for Spain are now being loaded at the Bulgarian Black Sea port of Varna, said a source, who asked not to be named as the data is not yet official.
 

Four ships are loading a total of 89,000 tonnes of wheat at Varna, including the grain bound for Spain, and a ship is loading some 33,000 tonnes of wheat bound to Portugal at the port of Burgas, two port officials said.

The Balkan country has already exported 17,000 tonnes of wheat to Spain, 14,000 tonnes to Italy and 10,000 tonnes to Portugal. Smaller amounts were shipped to Israel, Lybia and Cyprus.

Wheat exports have picked up as the price rose to BGN230 (US$153) per tonne of feed wheat ex-farm and to BGN260 ($173) per tonne of milling wheat, Radoslav Hristov, chairman of the National Association of Grain Producers, said.

However, the rains have hit the quality of Bulgarian wheat and the exports will be mostly of feed wheat, he said.