Tuesday, 15 February, 2000
A total of 4.7 million tonnes of total cereal export licenses have been granted so far this season. No bids were accepted this week, reflecting low world demand for EU wheat. North Africa however is expected to rejoin the world market in the near future which may lead to some interest for EU grain.
French wheat and barley prices have been fairly static from the previous weeks levels due to a lack of export news. Iraq tendered to buy 50,000 tonnes of French wheat, but there was little market response as negotiations with Iraq are known for their length.
French maize prices saw increases from last week ranging from 1-7/t due to the suggestion that ONIC was going to revise down its 1999/00 maize carryout by 10%. The revision is expected due to higher feed use and exports to the EU.
German cereal export supply has been stimulated by low storage capacity, liquidity, and firmer prices, but demand still remains quiet. From July to November, Germany exported 4.361m tonnes, compared to 2.633m tonnes for the same period last year.
Sweden is expected to have a wheat surplus as high as 800,000 tonnes in 2000 due to larger sowing areas. Swedish grain prices have been rising over the last few weeks due to a lack of supply.
French offers of all cereals into intervention are at 1m tonnes, which is over 70% less than the volume offered this time last year.
Demand for Danish malting barley gave support to prices with active trade to China reported over the week. The first shipment of 57,000 tonnes amounts to one of the largest export orders with other shipments in the pipe line. Prices rose over 19% from last week in national currency terms.
Taken from HGCA weekly MI Bulletin
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