HGCA: Euro loses against Dollar

Thursday saw the ECB keep interest rates on hold, at 4.75%. Despite ongoing uncertainty in the USA over the next President, the Euro lost around 1US¢ against the Dollar, ending the week worth 85US¢.

Helped by strong domestic demand and higher physical prices, MATIF wheat futures rose as much as 2/t last week. Traders noted that the ban on meat and bonemeal in French animal feeds was supporting grain values.

The stronger French wheat market, together with the Euro recovering from dollar-lows, has left exporters placing fewer bids at zero refunds.

Last week saw 54,000 tonnes granted. Around 20,000t of barley was sold from intervention at a minimum 127/t, well above the intervention price. This higher price reflects a recent improvement in world demand for feed barley.

Only 0.3m tonnes of barley remain in EU intervention stores. This time last year the EU held nearly 5m tonnes of barley stocks in intervention. Cereal import duties were also changed.