EU wheat markets sustained

EUROPEAN wheat markets saw price support last week as Algeria purchased up to 150,000 tonnes, some of which could come from Germany. Meanwhile Poland reportedly purchased as much as 280,000 tonnes of European milling wheat for delivery in October.

EU feed wheat prices firmed last week. Millers are purchasing lower quality wheat than usual. However, milling wheat premiums are still very high.

European malting barley markets remained quiet last week with harvest delays in northern Europe. Quality is still expected to be good despite the rains this season.

Spanish cereal trade is starting to pick up after the seasonal summer lull. Despite the anticipated record cereal harvest this season, prices are still firm as stocks are now very low. Maize harvest has commenced in the South of Spain, but maize prices are still firm as the main crop in the north is still to be harvested.

Germany saw very little trading activity last week with both buyers and sellers reluctant to enter the market until quality reports are confirmed. The proportion of spring malting barley is below last season, with 56% of this seasons spring crop being reportedly malting quality (61% 99/00). Feed barley trade is quiet with some interest coming from exporters who still have to fulfil contracts.

Harvest in Scandinavia is well underway with traders watching the quality results carefully following the poor quality in France and Germany. Prices in Sweden and Finland are still firm, but trade is thin.

1 = 61p, 1 = 1.63897 at time of writing.

Taken from HGCA weekly MI Bulletin To contact the HGCA phone 020 7520 3972 Click here to visit the Home-Grown Cereals Authority