Tuesday, 01 June, 1999

  • EXPORT business continued to support values in Continental grain markets over the week. French milling wheat prices gained from the recent Algerian wheat purchase, and moved closer to intervention price levels. Domestic markets saw prices firmer due to short-covering.

  • THE EU decision to proceed with the next food aid delivery to Russia, after delays, gave some price support to the market and helped to relieve some of the pressure on intervention. The 160,000t of wheat from intervention stores is of French and Danish origin.

  • NEWS that Saudi Arabia is looking to sell 890,000t of feed barley from its stocks on to its internal market put pressure on EU barley prices. Saudi Arabia tends to import 5-6million tonnes of feed barley a year.

  • INTEREST in German milling wheat was reported from Holland and Belgium this week. Possible Tunisian interest was also noted, but for wheat of superior quality, supplies of which are reported to be lacking.

  • GERMAN deficit regions saw some demand for old-crop wheat, while most interest is now focused on new-crop. First indications suggest delivered new crop values at DM225/t and DM205/t for wheat and feed barley respectively. Hannover November futures are now trading at values above the intervention price, gaining support from EU export sales.

  • IBERIAN grain markets reflected the markets attention turning to the new crop. Wheat prices received help from short-covering and a firmer French market.

  • SMALL volumes of Greek durum wheat have been imported into Spain, and are expected to continue over coming weeks because of the recent drought problems. Durum wheat, however, does not compete directly with other EU wheat.

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