Tuesday, 23 May, 2000

  • Most European grain prices were generally lower last week, despite Morocco tendering to purchase 120,000t of optional-origin wheat and 60,000t of optional-origin barley. Overall, the European market is very quiet, with many players looking towards the new-crop campaign.

  • The MANCOM award of just 93,000t of free-market wheat on 11 May had a negative impact on wheat prices over last week. The small award implied that the EU grains panel would probably sell wheat from intervention stocks rather than from free-market sources for the rest of the season.

  • European malting barley prices fell again last week as consumer interest for old-crop faded fast. Indeed, old- and new-crop prices are narrowing as the harvest approaches. Despite little domestic activity, export possibilities remain. New-crop trade for French Esterel has been reported.

  • France is expected to harvest a larger wheat crop this year after slightly higher planting areas. Coceral recently estimated that overall cereal production will be 65.8 million tonnes and soft wheat production 36.7m tonnes.

  • Spanish grain prices fell last week on better harvest 2000 prospects and the arrival of reduced-levy maize from Argentina. This is now depressing Spanish domestic prices in the feed barley and feed wheat markets.

    Spain is also likely to be a net exporter of barley next season, a change from two months ago when it looked like total demand could only be met by imports.

  • Euro1 = 60.5p at time of writing.

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