EU increases wheat refund: HGCA

Tuesday, 26 March, 2001

• LAST week saw the EU grant nearly 400,000 tonnes of wheat export refund at a maximum 10/t.

  The required refund rose last week despite the Euro weakening further against the dollar since world (US) wheat prices fell significantly over the preceding week.

  Barley exports continue to be at zero refund.

• Euro slips further

  DESPITE a further half-per-cent cut in US interest rates, the Euro continued to trade below 90US¢ last week. Late last week, the Euro slipped below 89US¢, but recovered to end the week at just over 89US¢.

  The Euro was last this weak in mid-December, with the sub-83US¢ low set in late October according to ECB data.

  A weak Euro against the US Dollar reduces the required export refund, particularly for EU wheat and wheat-based exports.
  

• 1 = 62.31p or 89.35US&¢ on 26 March

  Taken from HGCA weekly MI Bulletin To contact the HGCA phone 020 7520 3972 Click here to visit the Home-Grown Cereals Authority