Taken from HGCA weekly MI Bulletin|
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HGCA charts rise in EU grain prices
Tuesday, 03 August, 1999
EU grain prices moved higher over the week, helped in part by last weeks decision to open this seasons free-market export tenders amid reports of another large EU harvest. News of a number of potential buyers in the market also offered some price support.
Around 0.2-0.4m tonnes of French grain is awaiting delivery into EU intervention. The delay is said to be due to transport problems.
ONIC, the French Cereals Authority, has indicated increased effort would be made to sell the grain to non-EU countries to clear space for the new-crop failing delivery.
ONIC reported a rise in the proportion of bread-making varieties in this years French wheat crop from 68% to 73%. The move back towards bread-making varieties is said to mark a greater recognition of the need for quality on the part of farmers.
The German winter barley harvest is almost complete, with yields and quality said to be good. Warm weather across several regions has aided harvesting of winter rye and spring grains, with wheat and rye giving some good bread-making results despite some regional variation.
The EU malting barley market is seeing traded volumes pick up as the harvest gets under way. Buying interest is reported by Gersons, the malting barley trader, to be fairly strong and with buyers able to negotiate for lower prices.
Spain is looking to the UK to supply some of its grain requirements following an uncertain drought affected crop.
Late plantings in Belgium and a higher incidence of disease saw a slightly lower wheat crop compared to 1998. Poor weather early in the year forced many farmers to plant the lower yielding spring wheat varieties instead of winter varieties.
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