EU grain report from HGCA

Tuesday, 8 June, 1999

  • French wheat gained some price support from
    Algerias latest wheat purchase, which took the total
    bought to 125,000 tonnes under a May 31 tender.

  • Rumours of possible Libyan interest also added to
    the markets positive tone.

  • German wheat saw trade largely restricted to
    meeting old crop contracts with little fresh demand
    on the domestic and international front.

  • Millers have stopped asking for intervention wheat, although this
    is only expected to be a temporary move. Despite
    this, wheat prices ended the week largely unchanged.

  • ZMP, the German market reporting agency,
    reported a small proportion of feed barley, damaged
    in farm storage. The problem, noted too ate to
    prevent the barley from reaching the market, has
    been serving to keep prices under pressure.

  • Iberian grain prices received support from short-covering
    over the week with several regions reporting light stocks.
    Slow farm sales have added to the situation because of low farm-gate prices.

  • ONIC, the French Cereals Authority, reported total
    French grain intervention offers reached 8.87M
    tonnes to 31 May; the close of the intervention
    season.


    Of the total, an estimated, 6.97M tonnes is
    expected to pass the intervention quality testing.

  • German grain intervention stocks as of 31 May,
    were reported at 5.05M tonnes. This includes a total
    of 2.45M tonnes of barley, 1.74M tonnes of rye and
    0.7M tonnes of wheat.

  • Last weeks award of reduced- levy maize to Spain is
    expected to be the last granted before the summer
    so as to avoid coinciding with Spains summer
    harvest.

  • The news of this largely helped to support
    prices and is expected to continue to do so over the
    coming weeks in the face of strong demand.

    HGCA
    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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