Taken from HGCA weekly MI Bulletin|
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EU wheat firm, barley up HGCA
Tuesday, 08 February, 2000
European wheat prices remained firm last week, despite the moderate wheat tonnages granted at the weekly EU export tender. In France, Iraqs tender for 50,000t of wheat provided some mild support, as did Sterlings firmness. The latter should help French export competitiveness on EU markets.
Responding to the continued third-country feed barley demand while limiting internal price rises, the Commission pursued its policy of granting more intervention barley than free-market barley last week. Feed barley prices remained firm in most member states.
Malting barley prices on German and Danish markets continued to rise last week on steady export business. Danish grain markets were dominated by reports about malting barley shipments to China. Some 57,000t are
expected to leave Denmark next week. The 1999 Danish malting barley crop was of high quality.
With none of last years domestic maize crop left, feed grain supplies in Spain remain tight. Imports from member states, in particular maize from France and feed wheat from the UK continue, providing support to EU feed grain markets.
In contrast, demand for maize from Italys feed industry remains depressed, in reaction to the bird flu epidemic in northern Italy. Poultry breeders have
slaughtered at least 6.5 million birds and it will take two months for a repopulation of poultry stocks. Italy could thus start exporting some of its maize crop to
other member states.
The 1999/00 wheat and barley area in northern Italy is expected to be lower than last year due to heavy autumn rain and cold weather.
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