Tuesday, 8 June, 1999

  • French wheat gained some price support from Algerias latest wheat purchase, which took the total bought to 125,000 tonnes under a May 31 tender.

  • Rumours of possible Libyan interest also added to the markets positive tone.

  • German wheat saw trade largely restricted to meeting old crop contracts with little fresh demand on the domestic and international front.

  • Millers have stopped asking for intervention wheat, although this is only expected to be a temporary move. Despite this, wheat prices ended the week largely unchanged.

  • ZMP, the German market reporting agency, reported a small proportion of feed barley, damaged in farm storage. The problem, noted too ate to prevent the barley from reaching the market, has been serving to keep prices under pressure.

  • Iberian grain prices received support from short-covering over the week with several regions reporting light stocks. Slow farm sales have added to the situation because of low farm-gate prices.

  • ONIC, the French Cereals Authority, reported total French grain intervention offers reached 8.87M tonnes to 31 May; the close of the intervention season.
    Of the total, an estimated, 6.97M tonnes is expected to pass the intervention quality testing.

  • German grain intervention stocks as of 31 May, were reported at 5.05M tonnes. This includes a total of 2.45M tonnes of barley, 1.74M tonnes of rye and 0.7M tonnes of wheat.

  • Last weeks award of reduced- levy maize to Spain is expected to be the last granted before the summer so as to avoid coinciding with Spains summer harvest.

  • The news of this largely helped to support prices and is expected to continue to do so over the coming weeks in the face of strong demand.

    HGCA Taken from HGCA weekly MI Bulletin
    To contact the HGCA phone 0171-520 3972
    Click here to visit the Home-Grown Cereals Authority