Tuesday, 21 December, 1999
EU barley may feature in Irans latest purchase of 100,000t made on Tuesday, although prices barely responded to the news.
EU barley markets have seen strong demand in the run-up to the festive period with prices said to be fully steady. Tight supply in the face of many co-operative closures also supported prices. Brazil, Poland, Russia, Tunisia, Turkey, South Africa, and Rumania are all showing an interest in the barley market.
With the exception of the Scandinavian buying interest in wheat from northern Germany, most German markets have seen little action this week as Christmas and the New Year looms. All involved are said to be hoping for a market revival in the New Year. Bread and feed grain markets are all firm, although weak world markets are competing with German quality and E wheats.
Spanish maize prices are expected to fall a touch as a consequence of the EU awarding the reduced-levy for non-EU maize for Spain on Thursday (16 December). The award of 400,000t came as a surprise, as earlier in the week Spain was lead to believe that the preferential maize import scheme given to them was to be delayed till January. A further 200,000t was awarded to Portugal as well.
Spanish wheat prices are currently above UK wheat prices as a result of high domestic haulage and freight costs, resulting in firm demand for UK products despite the currently strong Pound. Active Spanish selling by merchants at harvest time at low prices has furthermore reduced stocks of the domestic product to a minimum.
French wheat prices are reportedly steady despite a slow market. Co-operatives are set to close for two to three weeks over Christmas.
Taken from HGCA weekly MI Bulletin
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