The first week of November brought the expected news – Plovdiv commodity exchange announced the price for the purchase of wheat for state reserve and it did not match the market expectations. This is not the first time a deal is not reached due to differences in price estimations, say experts. It is hardly a failure caused by lack of pricing information. Rather it is a declaration of intent to purchase and preparation of the potential customers. If someone wants to buy grain, this one has to make it according to market conditions at the time or do not declare intent at all, brokers comment.
Otherwise, the state reserve’s request was for 10,000 tonnes of wheat second group B, and the maximum quotation of the buyer was BGN310 per tonne, excluding VAT. Brokers, representatives of potential sellers said that according to their customers wheat with the required quality parameters could be offered for the stated purchase price. They also said that additional difficulty is the enormous number of documents that sellers must provide to be eligible to participate in the exchange procedure. During the session a broker of the State Reserve put special emphasis on the fact that requirements for quality indicators are not subject to comment and that the control over the quality of supply will be very strict.
Amid a good harvest of wheat in the world in 2011 and increased export opportunities for the Black Sea region, the offer is said to be a good opportunity for the domestic grain market, as far as the demands of international markets to the quality of bread wheat are also quite significant, said representative of the Reserve. However, the market disproved that.
