EU goes for Middle East market HGCA
Tuesday, 07 December, 1999
The export award of 402,500 tonnes of free-market wheat values French wheat in line with US soft red wheat at $95/t FOB. The award was seen to pre-empt the coming heavy supply expected from the Southern Hemispheres imminent harvest, to give EU exports a chance to cover some of the recent Middle East and North African interest.
Gersons, the malting barley trader, has reported that there has been strong malting barley demand for export business. This demand is thought to have had a great effect on winter and spring barley prices.
Spain has suffered from a poor crop this season, resulting in the country demanding both milling and feed wheat. The UK is currently supplying much of the feed grain Spain is demanding.
Germany has seen slow demand, with processors being hesitant buyers, while there have been steady offers into intervention. Malting barley prices are reportedly firm, with high malt export refunds helping exports.
French wheat prices remained flat this week, while maize prices continued to be firm, supported by demand from southern Europe. The strong demand is thought to be due to the EU looking unlikely to open the current tranche of the preferential maize import scheme.
So far this year, EU export business has had sales figures of 750,000t, with China taking the bulk of it with 350,000t. It is thought that a total of 1.25m tonnes will be exported over 1999/2000, with export restitutions playing a key role.
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Taken from HGCA weekly MI Bulletin To contact the HGCA phone 020 7520 3972 Click here to visit the Home-Grown Cereals Authority |
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