There are no economic obstacles to purchasing crops on the domestic grain market

By: STA Date: 2022. 11. 16. 09:29

Numerous indications have been received from producers that, contrary to the practice of the previous period, they are not able to sell their products, the economic actors who continue the acquisition reject the related offers citing export barriers and quality problems.

(Photo: Pixabay)

The Ministry of Agriculture deals with the issue of the stable operation of the grain market, and therefore reviewed the situation both in terms of exports and quality. In relation to the notification obligation introduced in connection with the export of grain and oilseeds in order to closely monitor the movement of goods, it can be said that the processing of export notifications works continuously with the shortest possible turnaround time. So far, the state has not had to use the option of pre-emption in any case. The quick turnaround time for handling notifications ensures that it has no influence on the functioning of the domestic market and does not affect the economic conditions of grain purchases.

The historic drought hit this year’s corn crop the hardest

Compared to previous years, the amount of the crop is significantly lower, which unfortunately is not even sufficient to cover the needs of domestic users. At the same time, on the basis of indications from farmers, it has become a widely used practice for corn to fail to purchase due to quality parameters and a national toxin problem. Sampling of the new crop and laboratory tests are currently ongoing, based on the data received so far, it can be seen that quality complaints only occur in certain regions of the country. Taking all sector, market and official information together, based on the measurements so far, only 5-15 percent of the tested items showed results supporting quality complaints. Based on the current information, it can be said that there is no visible nationwide problem with quality in Hungary.

Regarding domestic grain prices, international and domestic data show that domestic prices follow international price movements, and there is no visible sign of market disruption. Cereal quotations on the international and domestic markets have decreased slightly in the past period, which may also be due to the fact that the condition of autumn crops throughout Europe is favorable.