Tuesday, 11 May, 1999

  • French feed wheat continued to see a discount of around 4% below intervention, compared to 13% back in March. Short-covering and concentrated intervention activity helped to support prices and offset the lack of fresh export business.

  • French barley prices came under pressure this week with news that Saudi Arabia, a traditionally large buyer of EU barley, has been selling from its stocks.

  • The 1999 French wheat harvest is expected to be between 37 and 37.5 million tonnes, 3% lower than last years record production. The forecast is based on lower plantings, especially in the north of the country, where heavy rain has interfered with planting progress.

  • German processor demand was noted as helping to lift prices in some regions this week, but elsewhere marketings remained poor and below levels of previous years. Many areas are still holding significant stocks on-farm with trade for the new crop yet to pick up.

  • EU malting barley prices ended the week steady, helped by limited short-covering. With usage requirements largely having been met and malt markets still depressed, the prospect for further price recovery seems unlikely.

  • Portuguese and Spanish grains appear to have mixed crop prospects from region to region. The drought in Spain has raised concern over crop prospects, however in some regions, especially spring and the late-planted winter cereals seem to have escaped unscathed. Most winter cereals, however, suffered irreversible damage.

    HGCA Taken from HGCA weekly MI Bulletin
    To contact the HGCA phone 0171-520 3972
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