Tuesday, 15 June, 1999

EU grains saw a quiet week reflecting interest turning towards the new crop.

  • French subsidised wheat prices received some support from short-covering with prices, which normally see a discount to US soft red winter wheat, close to parity at $94.60/tonne.

  • News of a further Algerian tender for 100,000 tonnes of EU intervention wheat helped to alleviate concerns over intervention storage. The wheat is rumoured to be of German origin. However, this is likely to replace French wheat that went into the recent deliveries which was found to be of unsatisfactory quality.

  • German grain markets saw low buying interest, ahead of the coming harvest, reflecting current requirements being more than sufficiently covered. Of the limited new crop business reported, this was mainly concentrated in East Germany for barley and malting barley.

    German prices were largely unchanged given a quiet week generally. Sales of intervention wheat to France and Denmark helped to support prices.

    Old-crop feed grains have largely been absorbed into intervention excepting barley where higher stocks on-farm exerted price pressure on other feed grains.

    Favourable weather in Germany is helping the development of the new crop. In some regions, however, with heavier rainfall, part of the crop suffered from increased lodging, the prospects of which for harvesting remain uncertain over the coming weeks.

  • The EU maize market could gain from the Belgian dioxin food contamination scare. If feed containing animal meal is banned, demand for maize, which is said to be of a similar energy requirement, may increase.

    HGCA Taken from HGCA weekly MI Bulletin
    To contact the HGCA phone 0171-520 3972
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