7 November 1997

Intervention lures barley

WITH stores now open and grain prices coming under renewed pressure, UK traders are expecting to see significant tonnages of barley heading for intervention during the coming weeks.

With November intervention worth £82.62/t, that is about £8 more than the FW ex-farm price for barley and offers a £2 premium over the current delivered price.

"With exports so sluggish, intervention would seem to be the better option for some – especially in the more outlying areas that are not close to a port," said Dalgety trader Adrian Forrest. "We could easily see some going in soon."

Both wheat and barley have weakened over the past two weeks. A 10m tonne upward revision in predicted world wheat output by the International Grains Council to a record 598m tonnes, the refusal of Brussels to grant any wheat export licences last week and disappointing trade figures from the UK for October have added to the gloom. &#42