Ascension Day quietens down EU grain markets

Tuesday, 18 May, 1999

  • EU grains ended the week quietly as several markets
    closed for Thursdays Ascension Day Holiday.

  • However, last weeks award of 40,000t for free-market
    wheat at a refund of Euro37.90/t was widely welcomed by the trade, which was expecting only a small award in the remaining weeks of the 1998/99 export season. This week saw no export tender because of the holiday
    causing Algeria to postpone its tender to buy 50,000t of soft wheat of optional origin.

  • With French wheat hoping to be the likely choice, prices moved

  • EU grains continued to focus on the intervention
    market, having seen sales from intervention stores
    emphasised by MANCOM to clear stocks.

  • German grain prices firmed this week despite slow
    milling and compound demand, and followed the German futures
    market higher.

  • Most of the remaining demand went to meet immediate requirements before the new crops arrival, offering some mild price support. The volume traded on the exchange in Hannover reached its busiest point since it was first set up in April, exceeding 100 contracts – significantly higher than the 10 contracts seen on average in recent weeks.

  • EU malting barley prices rose early in the week on continued short-covering, but ended the week lower compared to last week.

  • Much of the activity was reported as coming from France, where prices moved closer to the intervention level.

  • In Germany, signs of demand in some regions for specific varieties of malting barley also helped to support prices.

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

    Click here to visit the Home-Grown Cereals Authority

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